Global investment bank Goldman Sachs has projected the Naira to exchange at the rate of 1200 to the Dollar in the short term on the back of policy reforms that could support the currency’s recovery.
The bank says it sees the Nigerian naira gain more ground against the US dollar in the next twelve months.
In a research note issued late Thursday, the New York-based financial institution highlighted the recent upward interest rate adjustment by monetary authorities in Nigeria and a recent N1.6 trillion bill auction by the central bank as signals that the country is turning the tables on a previous unorthodox policy regime that hindered the naira from trading freely.
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Outlook for the naira exchange rate has been positive after a series of measures including clampdowns on street traders, whose speculative activities have pressured the currency for long.
The central bank at the end of January gave a tall order to lenders to ensure that the net open position limit of their foreign assets and liabilities does not exceed 20 percent short of 0 percent long of shareholders’ funds unimpeded by loss, giving them only 24 hours to comply with the directive.
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