Naira To Dollar Exchange Rate ‘Would’ Hit N620/$1 In Black Market Soon -Expert

Naira to Dollar exchange rate would depreciate to N620/$1 in the parallel market otherwise known as the black market before the end of 2022.

Brand News Day Nigeria reports that the Founder of Agusto & Co Limited, Mr. Bode Agusto made this known during a webinar recently that the Naira to dollar exchange rate would depreciate to N620/$1 in the parallel market before the end of 2022.

READ: Why CBN Must Resume Sale Of Dollar To BDCs As FX Pressure Peaks

Mr. Bode Agusto made this known in a webinar titled, “Nigeria in 2022- Will 2022 Be a Year of Strong Growth Driven by Herd Immunity from COVID-19?”

He also explained that if the CBN maintains its current stands not to sell dollars directly to the Bureau De Change (BDC) operators, the Naira to dollar exchange rate would depreciate to N620/$1 in the parallel market before the end of 2022.

READ: BREAKING: Naira Falls Massively At Black Market, See New Foreign Exchange Rate

And the only way to reduce pressure in the parallel market is to throw money thereby selling dollars to the BDCs. If there is no additional funding to the BDCs from the CBN then the parallel market rate will be between N610 and N620 in 2022. It will be fueled by scarcity and the difference between inflation rates of the dollar and the Naira.”

He also predicted that the much-anticipated rate convergence in the foreign exchange market would take longer than expected since the central bank would be hell-bent on pegging the official rate.