Naira Soars in April: Goldman Sachs Analysis Points to Continued Strengthening

The Naira has emerged as the best-performing currency in April, poised to strengthen even further, according to analysis by Goldman Sachs.

Goldman Sachs economists have highlighted the Naira’s impressive surge against the Dollar, predicting that it may soon exchange below N1,000 per Dollar in the near future.

This revelation comes as part of the latest report on Nigeria’s economic landscape released by the renowned think-tank.

The report underscores the Naira’s remarkable rally, boasting a 12 per cent appreciation against the Dollar in April alone, following a significant 14 per cent surge in March.

Goldman Sachs had previously forecasted a Naira appreciation to N1,200 per Dollar by 2024. However, recent market trends have already seen this projection materialize, with the Naira trading at N1,230.61 at the official market and N1,200 at the parallel market on Monday.

The Central Bank of Nigeria (CBN) has played a pivotal role in bolstering the Naira’s value, intervening by selling foreign exchange to Bureau De Change operators at a revised rate of N1,101 per Dollar, down from N1,251. This intervention led to a significant N60 appreciation, with the Naira trading at 1,140 per Dollar at the Parallel Market by Friday.

CBN’s proactive measures, including raising the interest rate to 24.75 per cent at its last Monetary Policy Committee meeting, have contributed to mitigating losses caused by previous devaluations since June last year.

With capital inflows surging and policy interventions yielding positive results, the Naira’s bullish performance reflects growing confidence in Nigeria’s economic prospects.