Bismarck Rewane, the Managing Director of Financial Derivatives Company Limited (FDC), has predicted that Naira would depreciate further against the dollar as the year (2022) progresses.
In an interview on Arise TV monitored by BizWatch Nigeria, Rewane lamented that the naira was overvalued by 200%, saying the black market where Naira was exchanged for at least N680 per dollar on Tuesday, August 9, 2022, provided a true picture of the value of the Nigerian currency.
“The naira will likely depreciate again towards the N695 to N700 per dollar range at the parallel market. The Central Bank of Nigeria (CBN) will allow for a partial crawling peg in the forex market, and bring the I&E rate down to N440 per dollar in September,” Rewane stated.
The highly-revered economic expert, therefore, advised the apex bank to set Naira free, as he argued that the current multiple rates give room for manipulators.
“Forex market in Nigeria is a price discriminatory monopoly. The barriers between the markets are thin and permissible. Multiple exchange rates create room for arbitrage and encourage rent-seeking behaviour,” he added.
Meanwhile, in the last few days, Naira has continued to gain momentum as it traded no less than N680 against the dollar today in the parallel market when compared to the at least N715 it traded last two weeks. This development represents an appreciation of the naira by almost 5%.
