Can you believe that the naira is gradually appreciating against the dollar in the market?
This is the same naira that almost traded at 2000 to a dollar.
Goldman Sachs predictions may have or may not have contributed to this surge, however it is a good piece of information.
Indeed, many people did not believe in the government’s ability to turn things around, considering how low the naira had sunk.
But President Bola Tinubu kept appealing to Nigerians to be a little patient with his government and things will be alright.
You can say that the Vice-president Kashim Shettima knew what he was saying when he told Nigerians that they will smile soon.
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Obviously, he was privy to some information about the trajectory of the nation’s economy that most people didn’t know.
Against many evil reports and negative projections, the Naira has continued to regain its lost value against the dollar.
On Monday, April 15, 2024, the value of the naira rose to ₦1000 at the parallel market.
The funny thing is that the local currency opened for trading at ₦1,130 but rose to ₦1000 by midday.
Attributed Reason For Naira Surge.
The expectation that the Central Bank of Nigeria (CBN) will inject more dollars contributed to the surge of the naira.
You see, just last week, the CBN pumped $15.88 million into the market at ₦1,101 to the dollar, contributing to the naira’s upward trajectory.
So, this week again, expectations are high that the CBN will sell the greenback to Bureau de Change (BDC) operators.
Normally, the CBN sells dollars to BDCs at rates quoted on the Nigeria Autonomous Foreign Exchange Market (NAFEM).
Implications Of This Naira Surge
This means that the forecast made by US Bank Goldman Sachs over the weekend, was absolutely correct.
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Goldman Sachs, a financial institution, had forecast that the currency would be strengthened to the ₦1,000 mark.
It based its forecast on various measures implemented by the CBN to revive the Nigeria’s local currency.
