Access, Zenith, Others Sell Dollar at New Rates as Naira Breaks Record, Gains in Official Market
- The Nigerian currency, the naira, has been named the world’s best-performing currency by Goldman Sachs
- The American lender disclosed this in its report, saying that the naira has gained 12% in April in addition to March’s 14% gain
- The naira appreciated in the official market on Friday, April 12, 2024, exchanging for N1,142.39 per dollar
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Goldman Sachs backtracked on its earlier prediction about the naira’s performance in 2024 and named it the world’s best-performing currency in April.
The American lender said the Nigerian currency will exchange below N1,000 per dollar in 2024.
Naira to trade below N1,000 per dollar
Reports say that Goldman Sachs disclosed this in its latest report on Nigeria’s economic realities, stating that with the naira's appreciation rate in the FX market, it may trade below the N1,000 per dollar mark in the coming months.
The Goldman Sachs report said the naira has rebounded by 12% against the US dollar in April, adding to its 14% gain in March.
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The bank predicted the Nigerian currency would appreciate N1,200 per dollar this year.
The naira continues to appreciate in the official window
The development comes as the naira appreciated in the official window on Friday, April 12, 2024, exchanging for N1,142.39 against the US dollar compared to the N1,230 it sold on Friday, April 5, 2024, before the holidays.
The naira gained about 7.7% on Friday, April 12, 2024, according to data from FMDQ.
Traders quoted the US dollar at an intraday high of N1,265 per dollar, and a low of N1,100 per dollar, considered the best spot rate in three months.
The foreign exchange market recorded a daily turnover of $281.3 million, the week’s highest, as the Central Bank of Nigeria continues intervening in the FX market.
On Friday, April 12, 2024, the naira traded at N1,130 per dollar in the parallel end of the FX market.
BDCs send messages to CBN on use of Forex for collateral
Legit.ng previously reported that the Association of Bureaux De Change Operators of Nigeria (ABCON) has backed the CBN's latest order to stop commercial banks from using foreign currency as collateral for naira loans.
CBN’s order banning non-export domiciliary accounts for naira loans will boost FX liquidity, slow reserve accumulation, and strengthen the services sector.
ABCON president Aminu Gwadabe said the apex bank’s move is in order as the FX market will have a breather and boost liquidity.
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Source: Legit.ng
