The US dollar outperformed all leading currencies this month including the Chinese Yuan, Japanese Yen, and the Indian Rupee. The USD also outpaced the Sterling Pound to become the most powerful currency of April 2024. However, despite the prowess, the US dollar failed to surpass one particular local currency and dipped double digits against it.
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This particular local currency is rallying hard against the US dollar making it fall during every single trade this year. The policies of the country helped their currency shoot up in price making the USD head south rapidly. So which is the local currency that managed to outshine the mighty USD? Well, the answer is Nigerian Naira.
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Local Currency Nigerian Naira Rises 12% Against the US Dollar
Local currency, the Nigerian Naira experienced a sustained rally this year and outpaced the US dollar in Q1 of 2024. It had a stellar rally in March last month making the USD seem worthless against it. The Nigerian Naira rallied 12% against the US dollar this year which is a remarkable feat in the currency market.
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Read here to know why the Nigerian Naira is hammering the US dollar in the broader currency market in 2024. The move strengthens the local currency and is pushing Nigeria’s economy into recovery mode.
Andrew Matheny, an Economist at Goldman Sachs predicted that the local currency will also continue its rally in Q2. “This probably can run further. We would see an extension of the move to 1,000 and maybe even sub-1,000. Six weeks have gone by and they’re continuing to hold the line (against the US dollar), so that’s encouraging,” he said.
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When asked about the sustainability of the Nigerian Naira’s rally against the US dollar, the economist said, “We don’t have high conviction that they’re going to stay the course. It’s still early days of the central bank rebuilding its credibility”.
