Rewane Predicts Exchange Rate Adjustment, Naira at N680/$1

January 12, 2023
exchange rate adjustment

By Adedapo Adesanya

The chief executive officer (CEO) of Financial Derivative Company (FDC), Mr Bismarck Rewane, has said that amid an improved economy in 2023, Nigeria will see a positive change in its foreign exchange market.

According to him, the exchange rate adjustment will narrow the gap between the Investors and Exporters (I&E) segment of the FX market and the parallel market window from N747/$1 in 2022 to N680/$1 in 2023 due to a positive and bright outlook for the economy this year.

He added that private consumption would also increase, meaning that there would be a potential upside for corporate, which, in turn, would translate to higher earnings and greater profit margins.

“Inflation is to taper on restrictive monetary policy regime from 19.5 per cent in 2022 to 16.3 per cent in 2023,” he said, predicting that there will be an increase in non-oil revenue while invisible exports will support improvements in the current account balance.

According to the celebrated economist, speaking in relation to the real estate market, there will also be sustained growth in the sector caused by an increase in demand for real estate assets.

The FDC boss noted that the sector’s contribution to the gross domestic product (GDP) would increase by 6.5 per cent while contending that this growth would be sustained in the new year due to high population and urbanisation growth would be the major driver of the trajectory in both short and long terms.

The expansion, according to Mr Rewane, will happen on the back of the sector’s sustained growth, among other drivers.

He said the traditional risks in the sector include a high unfriendly interest rate environment, an increase in the cost of building materials, and poor land acquisition policy.

“Nigeria has the largest consumer market in Africa; its population will increase to 223.8 million in 2023; inflation will tapering in 2023, which implies that real disposable income will increase and real returns will rise,” he noted.

Adedapo Adesanya

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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