Naira Will Crash In 2021, Says CBN

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The Nigerian economy is in for tougher times as bankers to the Federal Government, the Central Bank of Nigeria (CBN) has disclosed that the country’s currency, the Naira, was likely to lose more of its value in relations to major currencies in 2021.

 The CBN stated this in a survey carried out by its Statistics Department, titled titled, ‘December 2020 Business Expectations Survey Report’.

In the 11-page survey report, the CBN said it conducted an online survey from December 7 to 11, with a sample size of 1,050 businesses nationwide. It noted that a response rate of 91.3 per cent was achieved and that the sample covered the agriculture, services, manufacturing, wholesale, retail trade and construction sectors.

 The CBN wrote: “Respondent firms expect the naira to depreciate in the current month and next month but appreciate in the next two months and the next six months.

“Inflation level is expected to rise in the next six and 12 months as firms expect the average inflation rate in the next six months and the next 12 months to stand at 13.24 and 14.51 per cent, while borrowing rate is expected to rise in the current month, next month, next two months and the next six months with indices of 19.2, 14.9, 14.7 and 14.3 points.”


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