Dollar Forecast: Leading Global Financial Institution Predicts a Plunge to N1,200

Renowned global financial analyst, Goldman Sachs, has projected that the price of the dollar to the naira will soon drop to N1200.

Naija News reports that Goldman Sachs, Andrew Matheny and Bojosi Morule revealed this in a recent examination of Nigeria’s economic conditions.

Goldman Sachs backed the Nigerian government’s recent monetary policies, which was seen as “cheap” or undervalued, in an effort to save the Naira.

The analysts believed that the country’s foreign exchange crisis would be resolved if the government saw to monetary policies.

“We think the Naira looks cheap on a REER basis in a historical context. Additionally, the current account surplus was +3.5% of GDP in 2023Q3, and we expect it to increase above +5.0% on the recent FX moves and associated import compression. We thus see the reason for the Naira to be undervalued, and we see it appreciating to 1200 within the next 12 months,” they stated.

The forecast comes just as the President Bola Tinubu-led government continues its effort to revive the value of the country’s currency.

Naija News recalls that On Friday, the Naira traded at N1627.40 per USD on the official FMDQ exchange market.

Several monetary policies have been revealed by the Central Bank of Nigeria.

The most recent was the updated draft manual that Bureau de Change personnel have been using for the past two months.

Meanwhile, due to a regulatory crackdown by the Nigerian government, cryptocurrency Binance stopped accepting Naira transactions.

Source: Naija News

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