Late Sunday and noon day today saw a remarkable appreciation in the value of the Nigerian currency, the Naira, against the US Dollar.
In the black market, $1 sold for N1,100 on Sunday but by 12:30pm on Monday, it sold for N1,050 in Lekki. At Idumota, Balogun and Alade Market, Ikeja, buyers got $1 for N1,000.
Unconfirmed reports say that it may sell for below that amount by close of business as market and fiscal policies continue to pile pressure on it.
This impressive achievement is in line with Goldman Sachs’ forecasts and occurs amidst escalating global geopolitical uncertainties.
“The Naira’s current bullish momentum is projected to persist, potentially pushing the exchange rate below N1000 per US dollar in the upcoming months,” Leadership quoted an economist from the American investment bank Goldman Sachs as having commented.
The Naira’s recent increase in value comes after a period of instability, during which it experienced significant devaluations since June of last year.
The Nigerian financial authorities have made efforts to address this, including raising interest rates to 24.75% and implementing strategic interventions in the foreign exchange market.
These measures have significantly stabilized the currency, as a spokesperson from the Central Bank of Nigeria (CBN) stated during the latest Monetary Policy Committee meeting.
Furthermore, market movements have also been influenced by geopolitical factors, such as the recent Iranian strike on Israel, which led to a flight to safety and strengthened the US dollar against other currencies.
However, the dollar steadied after initial gains, with Israeli ministers indicating no immediate plans for retaliation, which somewhat eased market fears.