The Nigerian naira recorded fresh gains against the British pound in the foreign exchange market, strengthening to around N1,840 per pound as pressure mounted on the UK economy and political uncertainty rattled investor confidence in Britain.
The News Chronicle reports that the most recent statistics from the Central Bank of Nigeria revealed the naira has been steadily regaining ground from previous losses recorded in April, aided by enhanced liquidity management and restored confidence in the official market. Analysts attributed the pound’s recent decline to mounting pressure on Prime Minister Keir Starmer and rising instability inside the Labor Party in the United Kingdom.
Despite ongoing inflation concerns and volatility in the broader foreign exchange market, currency traders said the naira has remained reasonably steady within the N1,825 to N1,950 range against the pound. Market observers also pointed out that the CBN’s assertive foreign exchange interventions have helped ease pressure on the local currency and calm panic-driven demand.
Meanwhile, the British pound struggled to attract robust buyers as uncertainty about the Bank of England’s next interest rate decision and concerns about the health of the UK economy continued to weigh on Sterling.
If foreign exchange inflows increase and the central bank continues to provide liquidity assistance throughout the market, experts predict the naira will remain stable in the short term.
