The Economic Intelligence Unit (EIU) predicted that the naira would depreciate by 10% or more in 2024.

It stated this in its Africa Outlook 2024 report titled “Strong growth amid heated elections and financial woes.”

In addition, the domestic currencies of the Egyptian pound of Egypt, the kwanza of Angola, the birr of Ethiopia, and the Sudanese pound of Sudan are expected to fall by double digits during the year, according to the report in a BusinessDay report.

The analysis stated that whether or not the devaluation would be more significant than 10% would depend on how their economies’ macroeconomic dynamics played out. It added that during the year, the currencies of most African nations would depreciate in different amounts relative to the US dollar.

It stated: “We forecast currency depreciation against the US dollar across much of Africa in 2024, although adjustments are expected to be less severe than those recorded in 2023.”

Reiterating its earlier warning highlighted in previous reports, it cautioned about the naira’s downward trend, kicked off by President Bola Tinubu’s implementation of foreign exchange market convergence.

Legit.ng had earlier reported that the Central Bank of Nigeria had abolished all exchange rates, including the black market.

Nigerians have suffered dramatically due to the decline of the naira’s value of more than 50% in both markets since the announcement of the convergence in May.

The country’s central bank is unable to meet the backlog of foreign exchange demand, which is a necessary condition to help stop the naira’s decline, according to a November analysis from EIU.

It said, “In Nigeria, an unsupportive monetary policy implies that the naira will remain under pressure while the central bank lacks the firepower to adequately supply the market or clear a backlog of foreign exchange orders, which will keep foreign investors unnerved.”