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Economist Predicts Dollar Exchanging for N600 during Easter

An economist, Bismarck Rewane, has predicted that a dollar may exchange for 600 naira during Easter period.

The exchange rate of the naira at the moment is 587 naira to a dollar at the foreign exchange parallel market.

Rewane, who is the executive director of financial derivatives, in his presentation at the Lagos business school, believes that the naira is still overvalued by 40%.

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He also predicts that the benchmark lending rate would rise from the current rate of 11.5% to 12% during Easter.

The economist says the economic crisis is being heightened by federal government resorting to borrowing to run its operations, despite rise in the price of crude in the world market.

According to him, Nigeria’s crude oil grade is now selling at over $100 over barrel above the $60 2022 budget benchmark price for a barrel of crude.

Rewane, however, explains that petrol subsidy is gulping oil revenue, while tax revenue is dropping due to the hostile business environment, affecting disbursement into the federation account.

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