Lates News

Citigroup Group stated that with the gradual interest rate cuts by the Central Bank of Nigeria and the decline in oil prices, the naira may face moderate pressure next year after stabilizing in 2025. Citigroup's African economist David Cowan said that by mid-next year, the currency of Africa's largest oil-producing country could depreciate to a range of 1,650 to 1,700 naira to the US dollar. The Central Bank of Nigeria lowered its key interest rate by 50 basis points to 27% on Tuesday, marking the first rate cut in five years and signaling the beginning of a loosening cycle after inflation fell to nearly a year low of 20.1% in August. Cowan said that the depreciation of the naira may first start with outflows of portfolio funds. He said that Citigroup traders estimate that about $9 billion of these funds currently flowing into the Nigerian market.