GoldenNewsNG
  • Home
  • News
  • Education
  • Business
  • Jobs
  • Daily Guides
  • About Us
  • Advertise with Us
  • Home
  • News
  • Education
  • Business
  • Jobs
  • Daily Guides
  • About Us
  • Advertise with Us
No Result
View All Result
Golden News
No Result
View All Result

FG Set to Boost Naira to Dollar Exchange Rate ,Target New Dollar to Naira Rate By December 

Enudi Golden by Enudi Golden
January 11, 2024
in business, Headline, News
Reading Time: 2 mins read
Black Market Dollar To Naira Today 29tth December 2023
189
SHARES
Advertisements

FG Set to Boost Naira to Dollar Exchange Rate ,Target New Dollar to Naira Rate By December.

Federal Government of Nigeria has set an exchange rate target for naira before the end of 2023. Several reforms have been introduced, and it is expected that the dollar supply will ease the pressure. Naira continues to exchange at the lowest level in history at both the official and unofficial markets.

Naira to Dollar Exchange Rate Forecast: JPMorgan Predicts Naira at N850 by Year-End

JPMorgan Chase & Co, a prominent American financial services firm, has made a prediction about the future of the naira to dollar exchange rate. This comes on the heels of recent announcements by the federal government regarding expectations of an exchange rate between N650 and N750 to a dollar by December. The naira has been facing challenges, but several policies are set to be implemented as the Central Bank of Nigeria (CBN) anticipates an inflow of $10 billion. In this article, we will delve into JPMorgan’s predictions and the factors influencing the naira’s value.

READ ALSO

Tinubu Under Pressure to Declare August 21 Public Holiday — See Why

ASUU Gears Up for Nationwide Protests, Strike Threat Looms

JPMorgan’s Prediction: Naira to Dollar at N850 by Year-End

JPMorgan has forecasted that the naira will close the year at N850 in the foreign exchange market. The financial company released this prediction in a note titled “Nigeria local markets strategy: Getting set for re-opening,” dated November 1.

The Outlook for Exchange Rate Flexibility:

JPMorgan also expects the Nigerian government to be open to greater exchange rate flexibility. The note suggests that the Central Bank of Nigeria (CBN) is willing to allow a more flexible exchange rate without relying on moral suasion to limit upward movements. The CBN had previously attempted to recalibrate the foreign exchange market in this manner, but these efforts were hampered by concerns about inflation.

The note states:

“The interbank FX rate has risen in recent days to over N900, from N750, thereby significantly closing the gap to the parallel rate, which is now just above N1,000.”

Challenges in Unifying the Exchange Rate:

JPMorgan acknowledges that a major challenge in the CBN’s plan to unify the exchange rate is limited foreign exchange (FX) liquidity in the official market. Furthermore, the naira is not fully convertible, adding to the complexity of the situation.

The financial institution also highlights the backlog of forex as a significant issue. They state:

“More Nigerians will patronize the parallel market due to a lack of liquidity. In our opinion, when authorities refer to the FX backlog, they are referring to US $6.8 billion in FX forward commitments that the central bank has not honored – the majority of which has been covered by commercial banks. “However, we estimate up to a further $3-4 billion (probably less given the FX adjustment) in unmet FX demand needed for goods and services imports. CBN will need to clear both backlogs, a difficult task given the low levels of net FX reserves.”

Conclusion: The naira’s exchange rate is a topic of concern in Nigeria, and JPMorgan’s prediction adds to the ongoing discussions about its future. The challenges of limited FX liquidity, an incomplete convertibility of the naira, and the backlog of forex commitments are hurdles that must be addressed to achieve exchange rate stability. It remains to be seen how the CBN and the government will navigate these challenges to reach their exchange rate goals.

📢 JOIN OUR WHATSAPP GROUP 📢 JOIN OUR TELEGRAM CHANNEL
Previous Post

CBN May Phase Out Old 200, 500,1000 Naira Notes by December As Cash Scarcity Returns

Next Post

Irate Mob Set Ablaze Two Suspected Criminals In Anambra

Related Posts

Tinubu Under Pressure to Declare August 21 Public Holiday — See Why

Tinubu Under Pressure to Declare August 21 Public Holiday

Ibadan, Oyo State – The International Council for Ifa Religion has urged President Bola Ahmed Tinubu to declare August 20...

Read moreDetails

ASUU Gears Up for Nationwide Protests, Strike Threat Looms

ASUU protests 2025,

Academic activities in Nigeria’s universities may soon be disrupted, as lecturers prepare for nationwide protests across branches. GoldenNewsNg gathered that...

Read moreDetails

FG to Begin Forest Guards Recruitment, Up to 5,000 Officers Per State

Forest Guards Recruitment,

The Federal Government has begun the process of recruiting thousands of forest guards across the country as part of efforts...

Read moreDetails

Tinubu Announces New Subsidy, Gives Other Details

President Tinubu Approves Subsidy on Kidney Dialysis, Slashes Cost to ₦12,000 — See List of Hospitals

President Tinubu Approves Subsidy on Kidney Dialysis, Slashes Cost to ₦12,000 — See List of Hospitals President Bola Tinubu has...

Read moreDetails

₦2m Grant Up for Grabs: Grooming Endowment Trust Calls Nigerian Startups to Apply

Grooming Endowment Trust - GETAccelerate 2025

Grooming Endowment Trust Opens 4th Cohort for Nigerian Startups Small business owners and startup founders in Nigeria have another shot...

Read moreDetails

IBB @84: Don’t relent in your prayers for Nigeria- Gen. Babangida urges Christians, Muslims

  CAN Representatives visit to Gen. IBB ... Says Nigeria’s existence lies in your hands   BY OUR REPORTER NIGERIA’S former...

Read moreDetails

Naira Slips Against Dollar in Both Official and Black Markets — Here’s the Latest Rates

Naira Slips Against Dollar in Both Official and Black Markets

The naira started the new trading week on a weaker note, slipping against the United States dollar in both the...

Read moreDetails

Is NELFUND a Loan or Free Educational Support from FG? Here is the Truth

Is NELFUND a Loan or Free Educational Support from FG

As thousands of Nigerian students begin applying for the Nigerian Education Loan Fund (NELFUND), one key question keeps coming up:...

Read moreDetails

NELFUND Disburses ₦238.9m to Niger Delta University Students

NELFUND Issues New Guidelines on Student Loan Upkeep Disbursement

The Nigerian Education Loan Fund (NELFUND) has released a total of ₦238.91 million to support students of Niger Delta University...

Read moreDetails

Nigerian Senators Earn Enough to Pay 4,700 Professors – Salary Breakdown Revealed

Nigerian Senators Earn Enough to Pay 4,700 Professors

A fresh report has revealed that Nigeria spends about ₦2.354 billion every month on the salaries and office costs of...

Read moreDetails
Load More
Next Post
Irate Mob Set Ablaze Two Suspected Criminals In Anambra

Irate Mob Set Ablaze Two Suspected Criminals In Anambra

SEARCH ADS

Latest Posts

NELFUND Issues New Guidelines on Student Loan Upkeep Disbursement
Education

NELFUND Issues New Guidelines on Student Loan Upkeep Disbursement

Tinubu Under Pressure to Declare August 21 Public Holiday
News

Tinubu Under Pressure to Declare August 21 Public Holiday — See Why

ASUU protests 2025,
Education

ASUU Gears Up for Nationwide Protests, Strike Threat Looms

Wema Bank Begins Activating YEIDEP Accounts for Applicants
Jobs

Wema Bank Begins Activating YEIDEP Accounts for Applicants

Forest Guards Recruitment,
Headline

FG to Begin Forest Guards Recruitment, Up to 5,000 Officers Per State

President Tinubu Approves Subsidy on Kidney Dialysis, Slashes Cost to ₦12,000 — See List of Hospitals
Headline

Tinubu Announces New Subsidy, Gives Other Details

Grooming Endowment Trust - GETAccelerate 2025
business

₦2m Grant Up for Grabs: Grooming Endowment Trust Calls Nigerian Startups to Apply

Headline

IBB @84: Don’t relent in your prayers for Nigeria- Gen. Babangida urges Christians, Muslims

Naira Slips Against Dollar in Both Official and Black Markets
business

Naira Slips Against Dollar in Both Official and Black Markets — Here’s the Latest Rates

Is NELFUND a Loan or Free Educational Support from FG
Education

Is NELFUND a Loan or Free Educational Support from FG? Here is the Truth

© 2024 Golden News

  • About Us
  • Advertise with Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms And Conditions
No Result
View All Result
  • Home
  • News
  • Education
  • Business
  • Jobs
  • Daily Guides
  • About Us
  • Advertise with Us

© 2024 Golden News