Leading global investment firm Goldman Sachs predicted that if policymakers stay on the right part, the Nigerian naira might continue to rise against the dollar and become the best-performing currency in the world.
The projection comes just as the Nigerian naira continues to strengthen against the dollar.
KemiFilani recalls that the Nigerian naira strengthened against the US dollar in April, rising 12%, building on its 14% rise in March.
Its value was once reduced by 71%, but a recent upswing has lifted it to 1,230 per dollar at the most recent official close, up from a record low of 1,627 on March 8.
After a series of actions by the central bank, Goldman economists, who forecast in February that the naira would appreciate to 1,200 per dollar in 2024, now believe it may appreciate further.
“This probably can run further; we would see an extension of the move to 1,000 and maybe even sub-1,000,” Goldman’s Andrew Matheny said in an interview.
“Since Goldman’s call in February, six weeks have gone by and they’re continuing to hold the line, so that’s encouraging,” he said.
Speaking with KemiFilani about the Goldman Sachs forecast, Kelechukwu Ogu, a business expert, suggested that the value of the naira would continue to rise if the country’s refineries commence full-scale operations.
“I mean, the rise in the value of the naira is commendable; what I think the government needs to do is focus efforts on everything that will make the value of the country’s currency continue to strengthen against the dollar, like enabling all the refineries, including Port Harcourt and Dangote refinery, to commence full operations,” he said.
He backed the Goldman Sachs forecast, stating that the government was heading in the right direction.
