According to Goldman Sachs, Naira has been the best-performing currency across the globe in April, 2024, with its Economists projecting that Naira will exchange below N1,000 per Dollar.
The firm disclosed this in its latest report on Nigeria’s economic realities.
According to a report by 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 report stated that the Naira rallied 12 per cent against the Dollar in April, adding to its 14 per cent surge in March.
Recall that in March, Goldman Sachs forecast that the Naira would appreciate to N1,200 per Dollar in 2024.
In the past months, CBN has said the country has witnessed a surge in capital inflows on the backdrop of several policy interventions.
According to the firm, the rally was supported by capital inflows and consecutive interest rate hikes, helping to recover from significant losses following two devaluations since last June.
Speaking in an interview with Bloomberg on Friday, April 12, 2024, an economist at Goldman Sachs, Andrew Matheny, commended the Central Bank of Nigeria (CBN) for “continuing to hold the line.”
“This probably can run further; we would see an extension of the move to 1,000 and maybe even sub-1,000,” Matheny said.
Goldman Sachs’ forecast comes amid a strong rally of the naira at both parallel and official sections of the foreign exchange market.
