The Central Bank of Nigeria said that the longest devaluation of Naira is expected in January 2021. This was found in a recent survey by the statistical office, titled ‘The December 2020 Business Expectations Survey Report.’
The report however, reveals that there might be a steady rise in interest rate from December till the next six months.
The development comes amid rising concerns over the plummeting value of the naira against the dollar in recent times, with its lowest fall occuring on November 30, 2020 when it exchanged for N500/$1.
According to the Apex Bank, the 11-page survey was done online from December 7 to 11, with a sample size of 1,050 businesses nationwide.
It observed that a response rate of 91.3 per cent was achieved and that the sample covered the agriculture/services, manufacturing, wholesale/retail trade and construction sectors.
The bank also revealed that the respondent firms were made up of small, medium and large corporations, covering both import and export-oriented businesses.
The report partly read: “Respondent firms expect the naira to depreciate in the current month and next month but appreciate in the next two months and the next six months.
“Inflation level is expected to rise in the next six and 12 months as firms expect the average inflation rate in the next six months and the next 12 months to stand at 13.24 and 14.51 per cent, while borrowing rate is expected to rise in the current month, next month, next two months and the next six months with indices of 19.2, 14.9, 14.7 and 14.3 points.”
The CBN stated that the report showed respondents were unhappy due to poor management of inflation by the government.