contact_phoneCall us +234 (0) 9073530044

POLITICS

Naira undervalued by 30% – Renaissance Capital

todayApril 3, 2024 12

Background
share close

Renaissance Capital Africa report suggests that 2024 has a positive outlook for Nigeria with a strengthening currency and a rise in oil prices.

Its latest report on economy review says that at the March 28 level of N1,303/$, the Nigerian naira is still largely undervalued to its long-term average, to the tune of 30 per cent.

The research firm also stated that the capital market is setting for a good start after February’s 20 per cent gains.

In its “Thoughts from Renaissance Capital Africa” report released on Tuesday, the firm stated that holders of equities had already seen gains of 20 per cent since the end of February, as the naira strengthened from 1,600/$ to around 1,300/$.

It stated, “We expect a bigger rally to come. In US dollar terms, Nigerian equities are around the cheapest they’ve been in 20 years.”

Stressing that monetary policy had become sensible again, Renaissance Capital Africa explained that portfolio investors could now invest with some confidence that sooner or later, inflation would start to fall.

With Nigeria’s 25-year average rate moved from 900/$ to 1,200/$ in last month’s update, through to this month’s model update, the average rate, it said, was now back at 912/$.

Written by: EaglesFM

Rate it
About
eaglesfm_logo

Eagles FM Abuja Nigeria provides information, entertainment & empowerment it’s listeners.

 “Your Radio Experience, You Can Count On”

Contact us
Address
download streaming app
0%