Bank of America says naira now undervalued after float

The Nigerian naira has moved from overvalued to being undervalued following the government’s recent foreign exchange reform, analysts at the Bank of America said in a June 28 note to clients.

“We now see a USDNGN fair value of 680 per USD (previously 580). However, USDNGN is likely to trade above this level, with year-end 700, and a return to 650-680 in early 2024,” the Bank of America analysts said.

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