Bismarck Rewane Says Naira to Plunge to N470/US$ in 2021

Nigerian economic think tank, Bismarck Rewane, said the Nigerian Naira could plunge as low as N470 against the United States Dollar in 2021 if oil prices decline to $50 per barrel.

Rewane made the statement during his presentation at a virtual forum organised by the Elevation Church on Saturday.

The economist, however, stated that the projection is the worst-case scenario for the year if the country produces 1.5 million barrels per day and the inflation rate hit 16.15 percent.

He said, “In the worst-case scenario, it goes the other way, in all cases you find that the average exchange rate at the end of the year officially will be at 470 in the parallel market and the Central Bank of Nigeria about 420, bringing the average to 438.”

On a positive note, the expert said if oil hits $60 per barrel with the country producing 1.8 million barrels of crude oil per day, Naira would exchange at N464 to a United States Dollar at the parallel market.

This, he said will bring the inflation rate to about 15.78 percent year-on-year.