Currencies
Naira Rates Converge as Goldman Predicts Currency to Gain
- Portfolio inflows, remittances surge to stabilize local unit
- Goldman Sachs sees naira strengthening to 1,200 per dollar
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The official and parallel-market exchange rates for the naira have largely converged in recent days as capital inflows surged, leading Goldman Sachs Group Inc. to predict the Nigerian currency will strengthen over coming months.
The naira was fixed at 1,609 per dollar on the official market on Thursday, according to Lagos-based FMDQ, which tracks the data, almost in line with parallel-market rate of 1,610. The official rate has been within 3% either side of the parallel-market rate since last week, compared with a spread of more than 30% in January, before the central bank introduced measures to improve dollar liquidity.