Nigerian businesses have expressed pessimism about the appreciation of the naira, projecting that it will continue to depreciate before a potential rebound by May 2025.
This is according to the latest Business Expectations Survey (BES) from the Central Bank of Nigeria (CBN).
The BES indicates that businesses expect the naira to depreciate through October, November, and into early 2025 due to persistent dollar scarcity, high inflation, and the country’s import dependence.
“Expectations on Exchange Rate (National) Respondent firms expect the naira to depreciate in the current month, next month and next 3 months. However, they expect an appreciation in the next 6 months,” a part of the report read.
Businesses in the BES survey also showed optimism for a brighter exchange rate outlook by mid-2025, with some anticipating a potential naira appreciation around May.
Despite the external reserves rising above $40 billion amid reforms by the CBN, the dollar to naira exchange rate has depreciated by 45 per cent year to date in November as demand pressures continue to impact rates.
