Part 5/6:
Future Projections for the Naira
Despite the optimistic outlook, Denham remained cautious regarding the potential for the naira to fall below 1,000 to the dollar. He mentioned that current purchasing power parity assessments indicate a value closer to 1,700 naira, suggesting that the currency remains under significant pressure. While the reforms executed via the FM platform are promising, the broader economic environment needs continual improvement in policy clarity and transparency to truly stabilize the naira.
Denham concluded that while achieving levels below 1,000 naira might not be realistic in the near term, the trend is positive for a well-structured market that might draw foreign investments and enhance economic stability in the long run.