Bismarck Rewane, the chief executive officer (CEO) of Financial Derivatives, has revealed his expectations for Nigeria’s exchange rate market.

Speaking at a recently held Parthian Partners 2024 economic outlook session in Lagos, the renowned economist said he expects the naira to appreciate in the forex markets in 2024.

He also noted that inflation is likely to “drop in 2024 and could go as low as 17% in 2025.

Speaking further on the outlook of the Nigerian economy, Rewane noted that the good news will kick off more likely in the mid of 2023.

He said: "Once inflation begins to decline, the exchange rate naturally appreciates because the exchange rate pass-through starts slowing down.

“Base effects are expected to kick in by mid-year, with inflation moderating to an average of 23.6 percent in 2024 from an average of 24.4 percent in 2023.

The decline in inflation will naturally lead to exchange rate appreciation." Speaking on economic trends in 2023, Rewane added that the naira fell by 26 percent to N1,050/$ in 2023.

Rewane, however, does no expect the same exchange rate in 2024 Cable reports.