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Bank of America has revealed that Nigeria’s local currency unit is set to weaken further next year as its current exchange rate to the dollar is well above fair value.
According to the Bank, the central bank’s real effective exchange rate, and the currency fair value analysis shows the naira is 20 per cent overvalued.
It added that while the naira will come under increasing pressure due to limited government external borrowing, devaluation is unlikely to happen until after the February 2023 presidential elections.
