Dr. Tope Fasua, a special adviser to President Bola Ahmed Tinubu, has made a bold projection that the Nigerian naira may continue to strengthen and could potentially exchange at N600 to the US dollar in the foreign exchange market.
Fasua shared this forecast at the “Cowries to Cash” lecture and lunch event held in Abuja.
This prediction comes as the Nigerian naira has been appreciating against the US dollar, reaching as high as N901/$1 in the parallel market, marking a notable shift in its value.
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However, Fasua also issued a warning to Nigerians against hoarding foreign currencies in the expectation that the local currency will continue to depreciate. He hinted that government policies would surprise those who have such expectations.
Fasua pointed out that there would be significant reorganization in the banking sector to enhance the stability and strength of the naira. He also highlighted the government’s commitment to implementing policies that would support the naira and ultimately result in a stronger currency.
He said: “Some people thought that the naira would continue to lose value. Of course, we can already see what’s going on, and who knows, maybe the naira will strengthen even further to something like N500 or N600/$1.
“For those speculating, praying, and wishing that the currency would become nonsense, I believe that the Central Bank is rolling out the policies and the government that I serve, led by the President, will shock some of them.
“You need to listen to the agenda, the man himself (Tinubu), and you will see that the level at which he is thinking is far ahead of most of us.
“You know, he has some very great ideas coming up. Some of them are what you’ve seen reversing the fall in the value of the naira, but he has also challenged us to review forward many of the targets, for example, the idea that Nigeria’s economy will get to a trillion dollars. He wants to achieve it by 2026.”
Currently, at the official market, the exchange rate between the naira and the US dollar fell to 869.91/$1, indicating a 6.99% decline in the local currency compared to its value at the beginning of the week. This marks the second time the naira has experienced depreciation since the Central Bank of Nigeria initiated efforts to clear some of its FX backlog.
It’s worth noting that while the official market exchange rate showed a decline, the black market reported an appreciation, with the exchange rate quoted at N1050/$1, and peer-to-peer traders quoting around N1062.10/$1.
The situation reflects the dynamic nature of the Nigerian foreign exchange market, with different rates across various segments.