The naira has surged to the milestone of N1,000 against the US dollar in anticipation of the Central Bank of Nigeria’s (CBN) sale to Bureau de Change (BDC) operators.
At the parallel market, the naira’s value strengthened to N1,000 per dollar by midday on Monday, marking a significant rise from its earlier opening rate of N1,130.
The surge follows traders’ anticipation of another round of dollar sales by the CBN to BDC operators.
Last week, the CBN injected $15.88 million into the market at N1,101 to the dollar, contributing to the naira’s upward trajectory.
Typically, the CBN sells dollars to BDCs at rates aligned with the lower band of rates quoted on the Nigeria Autonomous Foreign Exchange Market (NAFEM).
The strengthening of the naira to N1,000 against the dollar corroborates with the forecast made by US Bank Goldman Sachs over the weekend.
The financial institution projected that the naira would reach the N1,000 mark, citing various measures implemented by the CBN.
In February, Goldman Sachs Group Inc. had predicted that the naira would strengthen to N1,200 per dollar this year.
However, they now see the potential for it to exceed that level due to the recent actions taken by the central bank.
