The naira may experience some level of pressure in the next six months due to an expected easing cycle by the monetary authorities and a seasonal demand for foreign exchange for summer overseas, according to Norrenberger, an advisory and asset management firm.
In its recently released economic outlook, the Abuja-based firm, noted that the renewed U.S. protectionist policies under President Donald Trump, including the reimposition of tariffs on certain countries, may lead to a stronger U.S. dollar, thereby exerting downward pressure on emerging market currencies like the naira.
“Key factors that could weigh on FX inflows in H2 include the anticipated monetary policy easing by the CBN, which may result in reduced FPl attraction,” Norrenberger wrote in its report titled ‘The Great Recalibration: From Shock to Calm’.