Mohammed Shosanya
A report by Goldman Sachs economists,says 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.
It described Naira as the best-performing currency this month (April), saying the currency will exchange below N1,000 per Dollar.
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 foreign exchange 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.