Naira emerges as best-performing currency in the world, to exchange below N1,000

[okohmichael28]

The naira has emerged as the best-performing currency this month (April) and is predicted to exchange below N1,000 per dollar.
This is according to Goldman Sachs in its latest report on Nigeria’s economic realities.

Goldman Sachs is a think-tank organization that offers investment banking, securities trading, and investment management services to a wide range of clients, including financial institutions, governments, and individuals.
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.
The group’s 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.

With the Central Bank of Nigeria, CBN, intervening by selling FX to Bureau De Change operators at a revised rate of N1,101 per Dollar from N1,251, the Naira appreciated by N60, trading at 1,140 per Dollar at the Parallel Market on Friday.

In the past months, CBN has said the country has witnessed a surge in capital inflows on the backdrop of several policy interventions.
At its last Monetary Policy Committee, MPC meeting, the CBN raised the interest rate to 24.75 per cent, helping it retrace losses caused by two devaluations since June last year.

The currency’s rebound is part of broader economic reforms initiated by President Bola Tinubu, aimed at ending years of economic stagnation.
These reforms, including the controversial scrapping of fuel subsidies, have had mixed effects, with inflation soaring but also signs of economic revitalization.

The naira’s performance and the central bank’s policies reflect a delicate balance between attracting foreign investment and managing domestic economic pressures.

Goldman Sachs’ Andrew Matheny expressed cautious optimism about the sustainability of these policies, highlighting the challenges of maintaining reform momentum and the social implications of high inflation.