Analysts predict that the recent stability in Nigeria’s foreign exchange market, along with the strengthening of the naira, will help to lower the country’s high inflation rate.
Umaru Mustapha, a research analyst, anticipates a reduction in prices as imported inflation decreases, leading to moderation in inflation this year.
The naira recently reached a seven-month high against the dollar on the black market, indicating improved currency strength. This appreciation is expected to benefit companies, with increased profitability and reduced FX devaluation compared to last year.
Financial Derivatives Company Limited also forecasts that the strengthening naira will alleviate cost pressures on imported goods, resulting in lower prices and improved consumer standard of living.
Source: Business Day