Investment Bank Predicts Weakening Naira in 2026

A top investment bank predicts a new naira to dollar exchange rate in 2026, projecting a weakening due to expected pressures from lower crude oil prices and a new monetary easing cycle. David Cowan, Citibank's African economist, anticipates this shift, noting the naira's recent stability and appreciation.

However, Citi warns that a potential decline in oil prices next year could impact the currency's strength. The naira slightly strengthened against the dollar recently, showing a 36 kobo appreciation.

The Central Bank of Nigeria's recent interest rate cut aims to address inflation and sustain a disinflationary trend amidst economic challenges.