The Executive Director of Financial Derivatives, Bismarck Rewane, has forecast a drop in Nigeria’s inflation and exchange rate in 2024.
Rewane, a renowned economist, disclosed this at the recent Parthia Partners 2024 Economic Outlook event in Lagos.
According to him, the country’s inflation, which soared to 28.20 per cent in November, will moderate to an average of 23.6 per cent in 2024.
He added that an inflation decline would push the exchange rate down.
“Once inflation begins to decline, the exchange rate naturally appreciates because the exchange rate pass-through starts slowing down.
“Base effects are expected to kick in by mid-year, with inflation moderating to an average of 23.6 per cent in 2024 from an average of 24.4 per cent in 2023. The decline in inflation will naturally lead to exchange rate appreciation,” he said.
Rewane’s stance came days after the Governor of the Central Bank of Nigeria, Olayemi Cardoso, also projected that the country’s inflation and exchange rate would slow down.
However, other financial experts hinted that no economic fundamentals are signalling a potential inflation and exchange rate drop in Nigeria.
