Naira to plummet, interest rate to skyrocket, says CBN in new report

Central Bank of Nigeria (CBN) has disclosed that a survey carried out by its Statistics Department revealed that the naira is expected to plummet further in January 2021.

The report, titled, ‘December 2020 Business Expectations Survey Report’ adds that there might also be a steady rise in interest rate from December till the next six months.

The naira witnessed a sharp fall in recent weeks, reaching its lowest on November 30, 2020, when it exchanged for N500/$1. Since then, the dollar has been hovering between N460 and N470. As of Friday, however, one dollar exchanged for 465 in the parallel market.

Also, the Nigerian economy had on November 21 slid into its second recession in five years when the economy shrank again in the third quarter.

The recession is said to be the worst in 36 years, according to the data obtained from the World Bank. The Federal Government and some economists had expressed optimism that the country would exit the recession in 2021.

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