The market bias for the USD to NGN exchange rate is currently bearish.
Key drivers include:
• The Federal Reserve’s expected rate cuts could weaken the USD, while improving global growth and rising commodity prices may increase volatility for the dollar.
• The Nigerian Naira faces pressure from projected inflation rising to 37% in 2026 and forecasts suggesting potential depreciation due to global uncertainties.
Over the next 1 to 3 months, the expected trading range is likely to remain stable, fluctuating mildly below recent levels.
An upside risk could stem from stronger-than-expected oil prices, which would benefit Nigeria’s economy and support the Naira. Conversely, a downside risk may arise from the implementation of U.S. monetary policy changes, leading to further weakening of the dollar against the Naira.
