The Nigerian currency, Naira has again appreciated at the official market against dollar.
This is coming after the global investment banking, securities and investment management firm Goldman Sachs Group predicted a Naira-dollar exchange rate of 1000/$ or even below on coming weeks.
Goldman Sachs had acknowledged the resurgence of the Naira, rating it as one of the best performing currencies currently around the globe.
This bullish forecast, it says, follows capital inflows and interest rate adjustments, aiding the Naira recovery from substantial losses incurred due to two devaluations since June, following the government’s relaxation of currency controls.
Goldman Sachs Group Inc. is a highly regarded multinational investment bank and financial services company reputed for its diverse range of financial services.
Economist Andrew Matheny of Goldman Sachs said the Naira could reach 1,000 or even dip below to the dollar.
“This probably can run further; we would see an extension of the move to 1,000 and maybe even sub-1,000,” Matheny said in an interview.
Since Goldman’s call in February, “six weeks have gone by and they’re continuing to hold the line, so that’s encouraging,” he said.
The report credits President Tinubu’s decisive leadership and the work of his economic team anchored around the ACE team – Zacheus Adedeji, chairman of the Federal Inland Revenue Service; Olayemi Cardoso, CBN Governor; and Olawale Edun, Minister of Finance/Coordinating Minister of the Economy) for these positive changes and reforms like eliminating fuel subsidies which aims to revitalise the economy.
Goldman Sachs’ positive outlook reflects optimism for sustained growth and stability under President Tinubu’s administration.
Following Goldman’s prediction, the exchange rate between the Naira and the Dollar at the official window rose by 7.7% on Friday to close the week at N1,142/$1.
This marks the highest closing rate between the Naira and the Dollar in over 10 weeks, as Central Bank policies continue to have a positive impact on the local currency.
The exchange rate seems to be nearing the sub-N1,000 target, which many believe is the preferred rate for the Central Bank.
Several reports also suggest that the apex bank is targeting an exchange rate below N1,000/$1, indicating that it believes the local currency remains undervalued in the short to medium term.
DAILY GIST reported that the apex bank issued a circular to Bureau De Change operators (BDCs), informing them of the sale of $10,000 to each BDC at a rate of N1,101/$1.
