Expert speaks on naira to dollar exchange rate in 2024 as FG introduces new dollar account charges

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

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

Rewane speaks on the economy

Speaking further on the outlook of the Nigerian economy, Rewane noted that the good news will likely kick off in mid-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% to N1,050/$ in 2023.

Rewane, however, does not expect the exact exchange rate performance in 2024 TheCable reports.