Naira expected to hit 1,700/$ ‘in the near time’, says FDC

The naira is expected to trade between 1,550 and 1,700 per dollar in the near term, Lagos-based Financial Derivatives Company Limited has said.

Analysts at FDC, led by economic expert Bismarck Rewane, said the naira had plunged by 8% since May this year, weighed down by excess demand for travel.

“If the CBN hikes rate in its July 23 meeting and market rates go up, forex liquidity will increase,” they said. “This alongside multilateral loans bolsters the ability of the CBN to intervene in the market.”

The Monetary Policy Committee of the Central Bank of Nigeria is due to meet on Monday and Tuesday.