"Expect It": UK Firms Predict New Naira to Dollar Exchange Rate In 2024

"Expect It": UK Firms Predict New Naira to Dollar Exchange Rate In 2024

  • UK-based financial institutions have predicted a new exchange rate for the naira against the dollar
  • Goldman Sachs and Standard Chartered believe the naira is expected to rebound and close stronger in 2024
  • Their predictions are based on the current reforms embarked upon by the Cardoso-led CBN, which has helped naira achieve N1572.86/$ rate on Monday from above N1,600

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Analysts at Goldman Sachs Group Inc and Standard Chartered Plc have predicted that the naira will appreciate as much as 25% against the dollar in 2024.

Naira to dollar exchange rate
Goldman Sachs, Standard Chartered forecast new exchange rate for the naira Credit: Bloomberg/Contributor
Source: Getty Images

According to the two financial institutions, the naira appreciation is due to the interest-rate increases by the Central Bank of Nigeria and other steps to attract foreign capital yields.

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Earlier, Legit.ng reported that the CBN's Monetary Policy Committee (MPC) raised the Monetary Policy Rate (MPR), also known as interest rate, by four hundred basis points to 22.75% from 18.75%.

Also, the CBN said it attracted $530 million from Foreign Portfolio Investors FPIs during the sale of N1053 trillion worth of Treasury bill sales.

These moves by the governor of CBN, Olayemi Cardoso, are believed by analysts to provide a strong platform for the naira to strengthen in value.

Naira to rise by 25% against US dollar

Razia Khan, chief economist for Africa and the Middle East at Standard Chartered, expects the naira to end 2024 in a 1,200-1,300 per dollar range, BusinessDay reports.

She said:

“In more benign conditions, we could test even 1,100 naira a dollar or lower."

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She noted that the expected strong performance of the naira is due to a series of measures taken by the CBN to support the currency.

She added:

“Some of the forex backlogs have been cleared, monetary policy has been tightened and the transmission mechanism of policy is more effective."

Also, Goldman Sachs analysts, including Kamakshya Trivedi and Caesar Maasry, predicted that the naira could rally to 1,200 a dollar as investors seek richer returns from sovereign debt issued by frontier markets.

Pastor Adeboye predicts naira will bounce back

Earlier, Legit.ng reported that Adeboye prophesied the possibility of the Nigerian currency bouncing back against the dollar with greater influence.

Adeboye revealed the prophecy at the RCCG's monthly Thanksgiving service on Sunday, with the theme 'Uncommon Miracles'.

According to the religious leader, there was a period when Nigeria's currency completely favoured the US dollar.

Source: Legit.ng

Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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