The local currency, naira extended i ts weakness against the greenback at the Investors and Exporters’ (I&E) window yesterday, closing at N411.0 per dollar compared with N410.50/$1 on Tuesday, FMDQ data shows. Naira, however, remained stable at N485 per dollar on the parallel market according to data obtained from abokifx.com.
Following the naira’s slide to N410.25 per dollar at the I&E window on December 31 last year, analysts predicted that another devaluation of the local currency was imminent. Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, said last year that the apex bank will pursue exchange rate unification around the I&E window rate.
In a recent report, analysts at FBNQuest forecast an average I&E/NAFEX rate of N419 per dollar at the end of this year. The analysts said that although they expected a combination of higher oil revenue, multilateral loans and Eurobond sales should underpin reserves this year and allow the Central Bank of Nigeria (CBN) to contain naira exchange-rate depreciation, the forecast for average I&E/NAFEX rate is N419 per USD at end-2021.