Goldman Sachs has declared the Naira as the best-performing currency this month, with a remarkable surge against the Dollar. According to a report by the renowned economists, the Naira’s appreciation in the foreign exchange market may lead to it trading below N1,000 per Dollar in the near future.
In their latest analysis of Nigeria’s economic landscape, Goldman Sachs highlighted that the Naira had strengthened by 12% against the Dollar in April, following a 14% increase in March. This positive trend aligns with their previous forecast that the Naira would reach N1,200 per Dollar by 2024, a prediction that materialized earlier than expected as the Naira traded at N1,230.61 at the official market and N1,200 at the parallel market.
The Central Bank of Nigeria (CBN) has played a crucial role in supporting the Naira’s appreciation by selling foreign exchange to Bureau De Change operators at a revised rate of N1,101 per Dollar, down from N1,251. This intervention led to a further increase in the Naira’s value, with it trading at 1,140 per Dollar at the Parallel Market by the end of the week.
The CBN’s strategic policy interventions have attracted significant capital inflows in recent months, contributing to the Naira’s strengthening. During its latest Monetary Policy Committee meeting, the CBN raised the interest rate to 24.75%, a move that helped offset losses incurred from two devaluations since June last year.
Overall, the Naira’s impressive performance against the Dollar reflects Nigeria’s resilience in the face of economic challenges, offering hope for a more stable and prosperous future.
