Bismarck Rewane, the chief executive officer (CEO) of Financial Derivatives, has revealed his expectations for Nigeria’s exchange rate market.
By Dave Ibemere
Speaking at a recently held Parthian Partners 2024 economic outlook session in Lagos, the renowned economist said he expects the Naira to appreciate in the forex markets in 2024.
He also noted that inflation is likely to “drop in 2024 and could go as low as 17% in 2025.” Rewane speaks on the economy Speaking further on the outlook of the Nigerian economy, Rewane noted that the good news will likely kick off in mid-2023.
He said: “Once inflation begins to decline, the exchange rate naturally appreciates because the exchange rate pass-through starts slowing down. “Base effects are expected to kick in by mid-year, with inflation moderating to an average of 23.6 percent in 2024 from an average of 24.4 percent in 2023. The decline in inflation will naturally lead to exchange rate appreciation.” Speaking on economic trends in 2023, Rewane added that the Naira fell by 26% to N1,050/$ in 2023.
Rewane, however, does not expect the exact exchange rate performance in 2024 TheCable reports. FG sets dollar account charges Meanwhile, the Federal Inland Revenue Service (FIRS) has asked commercial banks to deduct and remit N50 electronic money transfer levy (EMTL) on foreign currency (FCY) transactions from the first week of January 2021 to the last week of December 2023.
In a statement by the tax agency, it said: “We will commence the deduction of the sum of fifty naira only on every foreign currency transaction with the equivalent amount of N10,000 and above going forward and remit it to the relevant authority.” Economist sets new exchange rate Earlier, Legit.ng reported that the Economist Intelligence Unit (EIU), a research and analysis firm, predicted that the Naira would close in 2023 with an exchange rate of N848/$ in the official market. The EIU also said by the end of the following year (2024), the naira would be exchanged at N861.5 for a US dollar.
Similarly, the EIU predicted that the pressure on the Naira would ease in 2024 without CBN implementing harsh measures.
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