Economic analysts have predicted a devaluation in the naira to about ₦400 per USD or ₦450 per USD. The speculations began because of the fall in crude oil prices the sector has witnessed recently, which may cause the Central Bank of Nigeria (CBN) to devalue the currency.
According to Bloomberg, the value of the Nigerian Naira may fall to about 10% to 20% in 2021.
From the recent economic reports, the prices of oil have slumped for a sixth straight session on Friday and are on track for a weekly fall of over 12% which will be the biggest fall in prices the sector has experienced in over four years.
The cause for the fall in oil prices is the Covid19 virus spreading rapidly across the world and the fear of the virus has reduced the global demand for crude oil. The virus is said to have spread across over 30 countries and over 2800 people have lost their lives to it and over 80,000 cases recorded.
Brent Crude oil and West Texas Intermediate (WTI), big crude oil trading organizations have seen a fall in their stock prices of about 3%. A big part of the reason the naira was devalued in 2016 was because of the fall in crude oil prices. In 2016, the naira fell by about 10%.
