Currencies
Naira Pushes to Post-Devaluation High as Rate Hikes Get Traction
- Central bank tightening, dollar inflows aid Nigerian currency
- Goldman sees naira rallying to 1200/dollar within 12 months
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Nigeria’s battered currency continued to advance following another interest-rate increase by the central bank, reaching its strongest level against the dollar since being devalued in January.
The naira has rallied 8% this week on the official market to close at 1,300 per dollar on Wednesday, the latest date for which pricing is available, as investors welcomed a 200 basis rate hike that lifted the central bank’s benchmark to 24.75% the day before.