The Naira’s resilience below the N1,600/$ mark during the holidays has sparked cautious optimism among businesses and economists. While transactional volumes dipped, the currency’s stability and narrowing gap between official and parallel rates hint at progress. But what does this mean for Nigerians grappling with inflation and a volatile economy?
- The Naira traded between N1,587-1,590/$ in the unofficial market, staying below the key N1,600 resistance level.
- Business confidence, particularly in agriculture, remains high, with plans to scale up operations and hire more workers.
- Economist Bismarck Rewane predicts the Naira will hover around N1,600-1,650/$, citing a 26.82% undervaluation.
- The gap between official and parallel rates has narrowed to 1-3%, a significant improvement from previous disparities.
- Global dollar stability and U.S. inflation data could influence the Naira’s trajectory in coming weeks.
The Naira’s steadiness reflects cautious optimism, but its undervaluation and external pressures like global trade tensions remind Nigerians that stability remains fragile.
For now, the Naira’s hold below N1,600/$ offers a glimmer of hope, but the road to full recovery is long.
