Deutsche Bank Adds Nigeria to FX Watchlist, Sees Further Naira Upside

Deutsche Bank has added Nigeria to its frontier foreign-exchange monitor, saying the naira appears undervalued and could remain attractive to carry-trade investors because of Nigeria’s high real interest rates. The naira gained 0.45% against the dollar in September, moving from ₦1,335.50/$ at the end of August to ₦1,329.50/$. The bank said stronger crude oil prices, improved foreign-exchange availability and investor interest in naira assets have supported the currency. However, it warned that elevated government borrowing and fiscal spending could weaken the outlook. Seasonal import demand, foreign-exchange liquidity and global commodity prices will also influence whether the naira can sustain its gains. The development follows Nigeria’s return to FTSE Russell’s Frontier Market classification, which could improve the country’s visibility with international investors.

Use The App To Win ₦1m

Stories are shared by community members. This article does not represent the official view of NaijaWorld — the author is solely responsible for its content.