According to a recent report by Goldman Sachs economists, the Naira has continued to strengthen against the Dollar, making it the best-performing currency in April.
The report highlights that the Naira has appreciated by 12% against the Dollar this month, following a 14% surge in March.
This positive trend has led the think-tank to suggest that the Naira may even exchange below N1,000 per Dollar in the coming months.
In line with their previous forecast, Goldman Sachs had predicted that the Naira would appreciate to N1,200 per Dollar by 2024, and this projection became a reality on Monday when the Naira exchanged at N1,230.61 at the official market and N1,200 at the parallel market.
The Central Bank of Nigeria has also played a 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.
As a result, the Naira traded at 1,140 per Dollar at the Parallel Market on Friday.
The CBN’s efforts, along with various policy interventions, have contributed to a surge in capital inflows in the country.
In addition, the CBN’s decision to raise the interest rate to 24.75% at its last Monetary Policy Committee meeting has helped the Naira recover from losses caused by previous devaluations.
