Nigeria Naira Appreciates to N1,600/$, Prompting Analysis and Future Forecasts

The naira exhibited resilience as it appreciated to N1,600 per dollar at the parallel section of the foreign exchange (FX) market on Monday.


This marked a notable 1.23 percent gain from the N1,620/$ reported just a day earlier on March 8. Bureau De Change operators in Lagos quoted buying rates at N1,570 and selling prices at N1,600, maintaining a profit margin of N30.

The official FX market also witnessed a 0.58 percent appreciation, with the local currency reaching N1,617.96 on Monday, compared to N1,627.40 on March 8.

Data from the FMDQ Exchange showed fluctuations, ranging from a high of N1,650 to a low of N1,511 during trading. Interestingly, Goldman Sachs projected the naira's further appreciation to N1,200 against the dollar within the next twelve months, citing the need for positive real interest rates and capital inflows to address Nigeria's currency and external liquidity challenges.

The recent monetary policy adjustments by the Central Bank of Nigeria, including a raised monetary policy rate, are seen as contributing factors to the limited yet significant improvements in the foreign exchange market.