Naira may weaken to 470 in 2021 – Rewane

Joseph Olaoluwa

The naira will weaken in the parallel market and likely depreciate to 470 against the dollar in 2021, if oil prices stay at $50 per barrel, Nigerian economist, Mr Bismarck Rewane, has said.

Rewane stated this in his presentation at a virtual forum tagged ‘Vantage Forum 2021’, organised by the Elevation Church on Saturday.

According to Rewane, this is a worst-case scenario for 2021 in the case Nigeria produces a 1.5 million barrels per day with inflation rate of 16.15 per cent in the full year.

He said, “In the worst-case scenario, it goes the other way, in all cases you find that the average exchange rate at the end of the year officially will be at 470 in the parallel market and the Central Bank of Nigeria about 420, bringing the average to 438.”

Speaking on the positive outlook of 2021, the expert said a dollar would sell for N464 in the parallel market if Nigeria oil price stand at $60 with 1.8 million barrels per day. This will bring inflation rates to 15.78 at year-end, he argued.

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