Experts Predict Naira Exchange Rate to the US Dollar, and Other Currencies in 2023
- The Nigerian currency naira had a tough 2022 trading against the dollar and other foreign currencies
- Experts have taken turns making predictions for the new year, and they feel it will be either good or more troubles
- The federal government in its 2023 budget set the naira to the dollar exchange rate at N435.57/$ for 2023
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In light of the Naira's woes, economists have provided a peep into the future of what Nigerians should expect in 2023.
You will recall that Legit.ng reported the Naira lost more than 23% of its value in 2022, the biggest devaluation in a single year since it was introduced as Nigeria’s store of value and medium of exchange on January 1, 1973.
Economists such as Bismark Rewane, CEO of Financial Derivatives Co Ltd, Johnson Chukwu, CEO of Cowry Asset, Dr Muda Yusuf, CEO of the Center for the Promotion of Private Enterprise (CPPE), and Prof Pat Utomi, political economist, have all provided good and bad predictions for the Naira in 2023.
What are the experts' predictions for naira in 2023
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Let's start with the good predictions from Bismark Rewane who is projecting that valueof Nigeria’s currency will strengthen to N680 per dollar in 2023.
According to him, he expects a change in exchange rate policy and this will narrow the gap between the Investors and Exporters (I&E) forex (I&E FX) and the parallel market.
"In 2023, exchange rate adjustment is inevitable, and when this happen and there is less administrative controls in the forex market, there will be more investment flows into the economy, which will help Naira defend against the dollar"
Johnson Chukwu agreed with Rewane and believes that the next government's actions will decide the economy's path.
He told Legit.ng:
"Naira exchange rate will stabilise in 2023 only if the right policies is in place and increase in the production of crude oil, which will increase the country’s reserves,"
The CEO of CPPE, Muda Yusuf is also expecting good news for the naira in 2023 how he noted that it will be hinged on who becomes the next CBN governor and its policies.
He noted one of the problems that have led to the poor performance of the naira is the dysfunctional policies around it.
"Another factor that is likely to impact the value of the naira is the reforms around the oil and gas industry if these are fix we can see an improvement in naira exchange rate value in 2023"
For Pat Utomi, he is warning that the exchange rate may go above N1000/$ and the inflation rate may hit 50 percent.
According to him, the 2023 budget will lead to massive inflation and loss of jobs in the country.
"“God forbid, if we don’t do something dramatic, the effect of this budget is that the exchange rate will go past N1000, that is a direct effect of this budget. You are going to see inflation probably go up to 50 percent.”
Naira records first loss of 2023 as expert predicts N1000 to one dollar rate
Meanwhile, Legit.ng had earlier reported that Naira recorded its first loss in 2023, as the foreign exchange market resumes full activities.
The Nigerian currency drop in value was recorded across official and black market foreign exchange markets.
Naira experienced significant losses in 2022, and experts have shared their predictions for 2023.