No More N1K/$: ABCON Foresees Stronger Naira Exchange Rate Against US Dollar in 2024

No More N1K/$: ABCON Foresees Stronger Naira Exchange Rate Against US Dollar in 2024

  • ABCON has provided insight into the expected performance of the Nigerian currency in the foreign exchange market in 2024
  • The umbrella body of BDC operators also anticipates convergence between the official and unofficial market rates
  • The naira performed poorly in the FX markets, with a new report ranking it as one of the worst-performing currencies in the world

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

The Association of Bureaux De Change Operators of Nigeria (ABCON) has projected that the naira will close against the dollar in 2024 at an exchange rate of N900/$.

In an exclusive interview with Legit.ng, Aminu Gwadabe, ABCON president, also shared his expectations on the convergence between official and unofficial market exchange rates.

Naira to dollar exchange rate
ABCON expects a better year (2024) for the naira at forex markets. Photo credit: sss
Source: Getty Images

In 2023, the value of the naira depreciated from N450 to the dollar at the official rate to exchange between N950 and N1000 at the official market.

Read also

Naira closes at N869.39/$1 in official market, falls further in black market

While in the black market, the naira fell from N750 to as high as N1,300 against the US dollar.

Bloomberg reported that this poor performance placed the naira among the world's worst performers after the Lebanese pound and the Argentine peso in a list of 151 currencies.

The new year has also not started well for the naira as it fell to a record low during the official market's second trading day in 2024 and exchanged above N1,200/$ in the unofficial market.

ABCON naira's expected performance in 2024

Speaking on the outlook for 2024, Gwadabe outlined expectations for a better year for the naira, particularly in the latter part of the year.

He said:

"We expect the slide of the value of the naira to continue in the first quarter of 2024 as a result of the acute shortage of liquidity carried forward from 2023 from an average of N500/$ to N1300/$ lately in the parallel market, leaving the speculators with no any market challenger that the BDCs use to performed.

Read also

"Clearing backlogs": $2.2bn dollar Afreximbank loan lifts Nigeria’s external reserve, reverses naira's loss

"As the apex bank continue to walk their talk in second quarter of 2024 in lifting capital control, clearing backlog,enhancing market confidence,diversify foreign inflows we will begin to see the convergence of the official and official market levels.
"Finally we expect naira to end in 2024 at N900/$ with the full convergence of both the official and unofficial market."

Economist sets new exchange rate

Earlier, Legit.ng reported that the Economist Intelligence Unit (EIU), a research and analysis firm, predicted the naira exchange rate in 2024.

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.

Aminu Gwadabe avatar

Aminu Gwadabe (President at Association of Bureaux de Change Operators of Nigeria) Alhaji Aminu Gwadabe is the president of the Association of Bureau De Change Operators of Nigeria (ABCON) that represents the interests of licensed Bureau de Change operators in Nigeria. Gwadabe comments on issues relating to the foreign exchange market, currency exchange rates, and economic policies in Nigeria over the years.

Online view pixel