Dollar Drops Again As Naira Hits Five-month High In Latest Exchange Rate

Late Sunday saw a remarkable surge in the value of the Nigerian currency, Naira, against the US Dollar.

Naija News reports that the Naira has exceeded crucial resistance levels and is even trading below ₦1,000 in certain sectors of the black market.

This impressive achievement is in line with Goldman Sachs’ forecasts and occurs amidst escalating global geopolitical uncertainties.

“The Naira’s current bullish momentum is projected to persist, potentially pushing the exchange rate below N1000 per US dollar in the upcoming months,” Leadership quoted an economist from the American investment bank Goldman Sachs as having commented.

The Naira’s recent increase in value comes after a period of instability, during which it experienced significant devaluations since June of last year.

The Nigerian financial authorities have made efforts to address this, including raising interest rates to 24.75% and implementing strategic interventions in the foreign exchange market.

These measures have significantly stabilized the currency, as a spokesperson from the Central Bank of Nigeria (CBN) stated during the latest Monetary Policy Committee meeting.

Furthermore, market movements have also been influenced by geopolitical factors, such as the recent Iranian strike on Israel, which led to a flight to safety and strengthened the US dollar against other currencies.

However, the dollar steadied after initial gains, with Israeli ministers indicating no immediate plans for retaliation, which somewhat eased market fears.