Impressive Rate of N1290 per USD

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In a remarkable turn of events, the Nigerian Naira has continued its upward trajectory against the US dollar, reaching new heights amidst the Central Bank of Nigeria’s (CBN) decision to hike interest rates. As of Monday, the Naira observed trading at an impressive rate of N1290 per USD across both parallel and official foreign exchange markets, marking a significant appreciation from previous levels.

According to reports from various sources, including a Bureau De Change Operator at Wuse Zone 4 Abuja, Mistila Dayyabu, the Naira’s surge has been palpable. Dayyabu highlighted that on Tuesday, the Naira was sold at an encouraging rate of N1,290 per USD, reflecting a notable gain compared to previous trading sessions. Buyers and sellers alike witnessed a surge in confidence, with rates reaching as high as N1,285 for buying and N1,290 for selling by Tuesday evening, indicating a substantial improvement over the preceding day’s figures.

Further bolstering these observations, data from FMDQ revealed that the Naira was exchanged at N1,382.95 per USD on Tuesday, showcasing a clear strengthening trend compared to the previous day’s rates. This surge represented a significant gain of N25.09 against the US dollar in the forex market, indicating robust market dynamics at play.

The backdrop to this remarkable surge in the Naira’s value is the recent decision by the Central Bank of Nigeria’s Monetary Policy Committee to increase interest rates by 200 basis points, bringing the rate up to 24.75 per cent from 22.75 per cent. This move by the CBN underscores a proactive approach to stabilizing the currency and fostering economic stability in the face of external pressures.

Impressive Rate of N1290 per USD: CBN’s Forex Intervention Boosts Naira’s Surge, Goldman Sachs Forecasts Further Appreciation

In a strategic intervention on Monday, the CBN executed a substantial foreign exchange sale, offering $10,000 to each Bureau De Change at a rate of N1,251 per US dollar. This intervention not only injected liquidity into the forex market but also signaled the CBN’s commitment to managing currency fluctuations effectively.

Looking ahead, market analysts, including those at Goldman Sachs, have expressed cautious optimism regarding the Naira’s future trajectory. In their forecast issued in March 2024, Goldman Sachs analysts predicted that the Naira could appreciate further to N1200 per US dollar within the next 12 months, providing a glimmer of hope amidst ongoing economic uncertainties.

In conclusion, the Naira’s remarkable appreciation to N1,290 per USD stands as a testament to the resilience of the Nigerian economy and the proactive measures undertaken by regulatory authorities. As stakeholders monitor these developments closely, the path forward appears to be paved with cautious optimism and a sense of renewed confidence in the nation’s currency.