Goldman Sachs has highlighted the Naira’s remarkable performance against the Dollar this April, deeming it the top-performing currency of the month.
According to a report by Goldman Sachs economists, the Naira’s strengthening trend in the foreign exchange market suggests a potential for it to trade below N1,000 per Dollar in the near future.
This observation was outlined in the latest report addressing Nigeria’s economic landscape by the think-tank.
The report noted that the Naira experienced a notable 12% appreciation against the Dollar in April, following a 14% surge in March.
In March, Goldman Sachs had projected that the Naira would appreciate to N1,200 per Dollar by 2024. This forecast materialized on Monday as the Naira was exchanged at N1,230.61 at the official market and N1,200 at the parallel market.
With interventions from the Central Bank of Nigeria (CBN), which included selling foreign exchange to Bureau De Change operators at a revised rate of N1,101 per Dollar, the Naira appreciated by N60, reaching 1,140 per Dollar in the Parallel Market by Friday.
The CBN has noted a surge in capital inflows in recent months due to various policy interventions. In its latest Monetary Policy Committee (MPC) meeting, the CBN raised the interest rate to 24.75%, aiding in mitigating losses resulting from two devaluations since June of the previous year.
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