Expert Speaks On Naira to Dollar Exchange Rate in 2024 As FG Introduces New Dollar Account Charges

Expert Speaks On Naira to Dollar Exchange Rate in 2024 As FG Introduces New Dollar Account Charges

  • Bismarck Rewane has disclosed his expectations for the performance of the Naira in the foreign exchange markets in 2024
  • The renowned Nigerian economist expressed optimism regarding the Naira's performance against the US dollar in the upcoming year
  • His remark comes as the federal government introduced new charges on domiciliary accounts for 2023

Legit.ng journalist Dave Ibemere has over a decade of experience covering Tech, Energy, Stocks, Investments, and the Economy.

Bismarck Rewane, the chief executive officer (CEO) of Financial Derivatives, has revealed his expectations for Nigeria’s exchange rate market.

Speaking at a recently held Parthian Partners 2024 economic outlook session in Lagos attended by Legit.ng, the renowned economist said he expects the Naira to appreciate in the forex markets in 2024.

naira to dollar exchange rate
Bismark Rewane, renowned Nigerian economist Photo credit: Benson Ibeabuchi
Source: Getty Images

He also noted that inflation is likely to “drop in 2024 and could go as low as 17% in 2025."

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CBN pays 14 banks’ FX backlog in bold move to strengthen the naira, set to pay foreign airlines

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.

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.

Read also

CBN issues strong warning to Forex defaulters as it clears backlogs in 14 banks, others

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.

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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