A report by Goldman Sachs says that the continuous rise of the Naira against the Dollar has earned it the place of top-performing currency for the month of April.
According to Goldman Sachs economists, with the appreciation rate of the Naira in the foreign exchange market, the currency may exchange below N1,000 per Dollar in the coming months.
The think-tank disclosed this in its latest report on Nigeria’s economic realities.
The report stated that the Naira rallied 12 per cent against the Dollar in April, adding to its 14 per cent surge in March.
In March, Goldman Sachs forecasted that the Naira would appreciate to N1,200 per Dollar in 2024. The group’s projection became a reality on Monday when the Naira exchanged at N1,230.61 at the official market and N1,200 at the parallel market.
With the Central Bank of Nigeria, CBN, intervening by selling FX to Bureau De Change operators at a reviewed rate of N1,101 per Dollar from N1,251, the Naira appreciated by N60, trading at 1,140 per Dollar at the Parallel Market on Friday.
In the past months, CBN has said the country has witnessed a surge in capital inflows on the backdrop of several policy interventions.
At its last Monetary Policy Committee, MPC, meeting, the CBN raised the interest rate to 24.75 per cent, helping it retrace losses caused by two devaluations since June last year.
Related story:
‘How Naira Has Become Sub-Sahara Africa’s Worst Performing Currency’ – World Bank