The Nigerian Naira’s strength against the US dollar continued to soar on Monday, reaching an impressive exchange rate of N1,290 and N1,382.95 per USD in both the parallel and official foreign exchange markets. This positive trend was attributed to the Central Bank of Nigeria’s decision to raise interest rates.
According to Mistila Dayyabu, a Bureau De Change Operator in Wuse Zone 4 Abuja, the naira was trading at N1,290 per USD on Tuesday, marking a significant increase from the previous day. He mentioned that they were buying at N1,285 and selling at N1,290 per USD by Tuesday evening.
Data from FMDQ also showed a strengthening of the Nigerian currency, with an exchange rate of N1,382.95 per USD on Tuesday, compared to N1,408.04 the day before. This represents a gain of N25.09 against the USD in the forex market.
The surge in the naira’s value coincided with the Central Bank of Nigeria Monetary Policy Committee Meeting, where interest rates were raised by 200 basis points to 24.75 per cent from 22.75 per cent. Additionally, the CBN conducted a significant FX intervention by selling $10,000 to each BDC at N1,251 per US dollar.
Looking ahead, analysts at Goldman Sachs have predicted that the naira will appreciate even further, reaching N1200 per US dollar in the next 12 months. This optimistic forecast reflects the growing confidence in Nigeria’s economy and its currency.
Overall, the recent developments in the foreign exchange market highlight the resilience and potential of the Nigerian Naira, making it an attractive prospect for investors and traders alike.
