Goldman Sachs Analysts have forecasted that the Naira will appreciate 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.
Goldman Sachs backed the recent monetary policy by the Nigerian government to rescue the Naira, which was described as ‘cheap’ or undervalued.
Accordingly, the analysts believed that the country’s foreign exchange crisis would be resolved if the government saw to monetary policies.
“We think the Naira looks cheap on a REER basis in a historical context. Additionally, the current account surplus was +3.5% of GDP in 2023Q3, and we expect it to increase above +5.0% on the recent FX moves and associated import compression. We thus see the reason for the Naira to be undervalued, and we see it appreciating to 1200 within the next 12 months,” they stated.
Newspot reports 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.
Meanwhile, Binance, a cryptocurrency, discontinued its Naira transactions over regulatory clampdown by the Nigerian government.
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