Top Stories

BREAKING: Bank Of America Reacts As Naira Falls Massively First Day Of July

Bank of America has reacted to the continuous fall of the Naira since CBN floated the currency.

 

CityNews Nigeria reports that following the floating of the naira in the foreign exchange market, the Bank of America (BoA) says the local currency has moved from being overvalued to undervalued.

Advertisement

 

Advertisement

The American multinational investment bank projects that the value of the naira would settle at N680 to the dollar by the end of 2023.

Advertisement

 

The bank said: “We now see a USDNGN fair value of 680 per USD (previously 580). However, USDNGN is likely to trade above this level, with year-end 700, and a return to 650-680 in early 2024,” the Bank of America analysts.”

Advertisement

 

The recent foreign exchange reforms by the Nigerian government which unified all FX windows have seen the rate of exchange between the naira and foreign currencies such as Dollars, Euros, and Pounds, being determined by market forces.

Advertisement

 

Economic analysts say the exchange rate would continue to fluctuate in line with market realities.

Advertisement

Some aver that this is a transition stage and that after a while, the value of the naira should be stronger.

 

Advertisement

Newsonline Nigeria reports that on Friday the Naira exchanged N769.25 for $1 at the investors and exporters window. This means a drop in value by 0.82 per cent when compared with N763 which it exchanged for the dollar on Tuesday, a day before the Eid-el-Kabir holiday that began on June 28.

The bank advised that with the current momentum gained by the reforms, President Bola Ahmed Tinubu’s next move should be to curb the oil theft that has remained largely responsible for the country’s continuous decline in oil revenue.

Advertisement

 

It added that if the government succeeds in ending oil theft by boosting security in the oil-producing areas, it could lead to an increase of Nigeria’s crude production from the current 1.2 million bpd, to 1.6 million barrels per day (bpd) in 12 to 18 months, barring OPEC limits.

Advertisement

 

“With the current momentum, Tinubu’s next big move should be to reduce oil theft – by reforming the security sector and involving host communities near the pipelines.

Advertisement

 

“In our view, increasing crude oil production to 1.6m bpd in the next 12 months is feasible and would be a structural improvement from current levels of about 1.2m bpd. If we include condensates, total oil production could rise from the current 1.4 million bpd to 1.8 million bpd in two years a level that Nigeria was producing pre-pandemic,” the bank said.

Advertisement

 

“Higher oil revenues and increased effort for non-oil revenue would ease the high debt service burden,” BOA added.

Advertisement
citynews

Recent Posts

Dele Farotimi released from Ekiti correctional centre

Human rights advocate Dele Farotimi has been released from the Ekiti State correctional facility after…

5 hours ago

Breaking: Ibadan Stampede: Court Orders Remand Of Ooni’s Ex-Wife, School Principal

A Chief Magistrate in Ibadan, Olabisi Ogunkanmi, has ordered the remand of Prophetess Naomi Silekunola, the…

5 hours ago

Nkechi Blessing gets engaged to younger lover, Xxssive [VIDEO]

Popular Nollywood actress, Nkechi Blessing has finally got engaged to her younger lover, Xxssive. This…

7 hours ago

GOAT: Who said Messi is better than me – Cristiano Ronaldo

Al Nassr captain, Cristiano Ronaldo, has jokingly reacted to a Lionel Messi taunt as he…

7 hours ago

Regina Daniels reveals the best way to predict one’s future as she shares more photos from her vacation

Popular Nollywood actress, Regina Daniels who is still enjoying her trip to the United States,…

7 hours ago

Jay-Z has no ‘plans to show loyalty to longtime friend Diddy’ as he battles r@pe allegation

Jay-Z has no plans to show loyalty to longtime friend Sean 'Diddy' Combs amid the…

8 hours ago