The Naira’s continuous increase against the US dollar has made it the best-performing currency this month (April), according to Goldman Sachs.
As per the analysis of a Goldman Sachs expert, the increasing rate of the Naira could cause its foreign exchange rate to fall below N1,000 against the US dollar in the coming months.
In its most current evaluation of Nigeria’s economic circumstances, the think tank made this revelation.
The study indicates that the Naira gained 12% against the US dollar in April, continuing its 14% increase from March.
Goldman Sachs had forecast that by 2024, the value of the Naira will appreciate to N1,200 per US dollar. The Naira’s value on Monday, when it was priced at N1,230.61 in the official market and N1,200 in the parallel market, confirmed this prediction.
The Naira strengthened by N60 and was trading at 1,140 per dollar in the parallel market by Friday as a result of the Central Bank of Nigeria’s intervention, which involved selling foreign exchange to Bureau De Change operators at a revised rate of N1,101 per dollar.
This improvement has been credited by the Central Bank of Nigeria to increasing capital inflows as a result of different policy initiatives. The CBN increased the interest rate to 24.75 percent during the most recent meeting of the Monetary Policy Committee, which helped to balance losses from two devaluations since June of the previous year.
