Naira at Growing Risk of Devaluation in Coming Weeks, Absa Says
- Nigerian currency seen at 530 per dollar by Absa analyst
- Devaluation may happen after Tinubu sworn in as president
A customer hands a 1000 Nigerian naira banknote to a vendor in Lagos, Nigeria.
Photographer: Damilola Onafuwa/BloombergThis article is for subscribers only.
Nigeria will likely devalue its local currency by about 15% after President-elect Bola Tinubu is sworn in on May 29 to alleviate severe trade imbalances and dollar shortages, an analyst at Absa Group Ltd. said.
Africa’s largest economy operates a multiple exchange regime dominated by a tightly controlled official rate, cutting off access to many businesses and individuals, which in turn drives demand to the unauthorized black market.