By Abubakar Yunusa Abuja
A raft of policy measures to unify exchange rates in Nigeria have been welcomed by the investor community – but without a cash injection from the central bank, the naira could continue to freefall.
International investors will continue to wait in the wings for a capital injection from the Central Bank of Nigeria (CBN) to fund foreign exchange demand of around $1.5 billion.
Until then, the naira could devalue to as low as N1,000 to the US dollar, says Charity Orji, chief executive officer of Angala Fintech Ltd., a Lagos-based payments and credit solutions provider. As of 30 June, the naira traded at 770.88 to the dollar, according to data from the CBN.
“The N,1000 level is a longer-term projection, however, that also takes into account little to no inflow of fresh capital investments,” says Orji. Until then, the naira could devalue to as low as N1,000 to the US dollar, says Charity Orji, chief executive officer of Angala Fintech Ltd., a Lagos-based payments and credit solutions provider. As of 30 June, the naira traded at 770.88 to the dollar, according to data from the CBN.
“The N,1000 level is a longer-term projectflow of fresh capital investments,” says Orji.
