The Central Bank of Nigeria (CBN) expects the naira to appreciate in the foreign exchange markets driven by better crude oil production and exports.
The apex bank stated this in its latest report titled “Macroeconomic Outlook: Price Discovery for Economic Stabilisation”.
According to CBN, the rise in crude export will help bring more forex into the market, reduce depreciation pressures, and strengthen the naira.
The CBN said:
“The expected rise in crude oil export receipts would provide further impetus to the market, moderate depreciation pressures and strengthen the naira.”
Punch reports that the CBN also said it expects improved investor confidence and higher remittances due to the reforms in the foreign exchange market.
The value of the naira at the official market was N1,566.82 on Thursday, June 18, while in the black market, the dollar was sold at N1,610.
The CBN believes that the latest move will help stabilise the exchange rate when all these kick in.
Outlook for the Nigerian economy
In the new report, CBN also stressed that the Nigerian economy indicates broad resilience, with continued growth, expected moderation of inflation, and greater exchange rate stability.
It noted:
“The outlook is influenced by better domestic crude oil production and refining, and higher oil prices, which could raise growth from 2.74% in 2023 to 3.38% in 2024.”
