Naira will appreciate to N1200 against dollar – Goldman Sachs

 

Global investment bank, Goldman Sachs has forecasted that the Naira will appreciate to N1200 per US dollar in twelve months.

Goldman Sachs analysts, Andrew Matheny and Bojosi Morule disclosed this in their recent analysis of Nigeria’s current economic realities.

The US-based financial institution highlighted the recent upward interest rate adjustment by monetary authorities in Nigeria and a recent N1.6 trillion bill auction by the central bank as signals that the country is turning the tables on a previous unorthodox policy regime that hindered the naira from trading freely.

“These developments have prompted us to shift to a constructive outlook for the Naira, which our FX strategists expect to appreciate to NGN 1200 vs. the USD in 12 months,” Goldman Sachs said.

Goldman Sachs backed the recent monetary policy by the Nigerian government to rescue the Naira, which was described as ‘cheap’ or undervalued.

The analysts believed that the country’s foreign exchange crisis would be resolved if the government saw to monetary policies.

Recall that the Naira traded at N1627.40 per USD on Friday at the FMDQ official exchange market

The Central Bank of Nigeria has unveiled several monetary policies.

The latest was the new draft guidelines for Bureau de Change operators in the last two months.

Also recently, Binance, a cryptocurrency, discontinued its Naira transactions over regulatory clampdown by the Nigerian government.