PwC predicts naira may crash to N415/$1 as 2019 political tension rises
- A global service company, PwC, has predicted a fall in the value of naira to dollar in its latest reports
- The PWC report also predicted inflation in the economy, adding that foreign reserves may also suffer a deplete
- Among other factors, the global group ascribes the value crash to political instability that may follow the 2019 elections
A new report by a multi professional service network, Price waterhouse Coopers, popularly known as PwC has predicted that the Nigerian currency may suffer a drop in value between the range of N390 to N415 to a dollar by 2019.
While predicting that an unpredictable change in the oil market may crash the value of naira to dollar at the foreign exchange floor, PwC, in its report titled 'Nigeria Economic Outlook Top 10 themes for 2019' disclosed that foreign market may be stable depending on the global oil value.
According to the report, the foreign reserves may also suffer a deplete in 2019 as a result of elections, adding that petrol price may be re-adjusted from N145 per litre based on continuation of fuel subsidy or full deregulation, The Independent reports.
Predicting inflation on Nigeria's economy, PwC further reported uncertainties around population figures, while also forecasting Nigeria’s population to stand at 206 million by 2020.
Meanwhile, PwC also highlighted key risks to foreign investment as declining interest rate, political instability following the 2019 elections, unfavourable investment climate, and broad macroeconomic instability.
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Meanwhile, the Central Bank of Nigeria (CBN) had earlier predicted that inflation rate in the country is expected to rise for the rest of 2018 till mid-2019 due to the forthcoming elections.
Godwin Emefiele, the governor of the CBN, made the disclosure when giving a speech at a bankers’ dinner in Lagos. He, however, stated that despite this gloomy picture, the short-term outlook of the Nigerian economy remains good.
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