Naira’s decline in 2024 is projected by Bloomberg

Bloomberg L.P, a media company based in the United States, has predicted that the Naira will continue to decline in 2024, marking its weakest performance since 1999.

According to Bloomberg’s market analysis, the Naira has already experienced a 55% decline this year, making it the worst-performing currency among 151 currencies tracked by Bloomberg.

Read Also: NAFDAC aims to prevent the sale of unbranded milk and cereals in open markets

The Naira’s decline has also led to concerns about its impact on the economy, as it has surpassed the N1,000/$ threshold twice and the foreign reserve has hit a six-year low.

These developments are attributed to President Bola Tinubu’s reforms, including the unification process of the foreign exchange rate.

Vetiva Capital Management Ltd. suggests that attracting international investors or increasing oil production could help mitigate the situation.

According to Patrick Curran, a senior economist at Tellimer Ltd, it is evident that the naira may experience further depreciation and this should be accompanied by stricter monetary policies to address imbalances in the foreign exchange market.

Additionally, market analysis suggests that an increase in external reserves, higher foreign exchange inflows, and a decrease in money supply would contribute positively to the currency.