JP Morgan, the American multinational financial services firm, has projected that the Nigerian naira will appreciate and trade at around N600 to the dollar in the upcoming months.

This announcement was made in a statement released by the financial institution on Thursday.

The projection comes after the Central Bank of Nigeria’s decision to unify all segments of the foreign exchange (FX) market, allowing market forces to determine the exchange rate.

President Bolu Tinubu’s call for a unified exchange rate has prompted the central bank’s new policy.

JP Morgan expects an initial overshoot towards the parallel market rate, followed by a settling of the USD/NGN rate in the high 600s in the coming months.

The firm remains optimistic about positive catalysts and expects further reforms to be implemented at a faster pace.