Nigerian Naira Forecasted to Depreciate Against Dollar Amid Supply Constraints
Nigerian analysts are forecasting a depreciation of the Naira against the Dollar this week, with the exchange rate settling at N1,417.94/$. The Nigerian foreign exchange market saw the Naira weaken across official and parallel segments due to persistent supply constraints and high demand.
AIICO Capital analysts noted a slight improvement in liquidity but highlighted the Naira's vulnerability to structural imbalances. Despite a rise in external reserves by $111.17 million to $46.01 billion, the Naira faced sustained pressure, especially in the parallel market where it traded around N1,487.00.
Remittances have seen a significant increase, with CBN Governor Olayemi Cardoso projecting a rise to at least $1 billion by year-end. Analysts caution that the Naira's movement will depend largely on FX supply conditions and structural imbalances in the market.
Plus234Feed summary based on reporting from Legit.ng. Read the original report below.
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