Naira Heads to N475 Per Dollar, Laments Bismarck Rewane

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The Managing Director, Financial Derivatives Co Ltd, Mr Bismarck Rewane, has expressed concerns that the nation’s currency, Naira, may decpreciate badly in the parallel market to 470-475 per dollar as oil prices remain between $40-$42 per barrel.
In a presentation at the Lagos Business School Breakfast Session, Rewane noted that oil prices were under pressure in what may limit supply of foreign exchange.
He said that with the resumption of international flight, forex will be in more demand, adding that Naira may depreciate as a result to between 470-475 in the months November and December
He was quoted saying, “The CBN will maintain its forex rationing stance and intensify efforts to keep the naira stable. External reserves to likely fall towards $34bn in the coming months.
“As Nigeria ponders IMF’s conditionalities, CBN could succumb to pressure and devalue the naira to N390-400/$.”
Rewane said with such development and the recent EndSARS protest, the 2021 budget may be revised.
He however gave indication that CBN’s Monetary Policy Committee meeting this month may consider stimulus package to take care of effect of EndSARS protest inflation in the country.

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