The Nigerian naira continued its positive run against the British pound, opening trading at N1,823 per £1 as recent foreign exchange reforms and stronger external reserves helped support the local currency.
The official market’s naira has displayed fresh resilience, The News Chronicle reports, rising from almost N1,845 per £1, to levels seen in early June. Central Bank of Nigeria statistics showed the local currency ended June 5 at N1,823 per pound, therefore showing progress in foreign currency market stability.
Market experts ascribe the performance to the CBN’s liquidity-control policies, a strict monetary policy stance, and a strong reserve posture—projected at some $50 billion. These elements have helped the central bank better support the naira and control swings in the currency’s value.
The official market has remained fairly stable, even with ongoing demand from importers, producers, and service providers, as changes continue to keep more foreign currency flowing through official banking channels.
The British pound, on the other hand, has been under pressure across the board after better-than-expected US employment data drove up the dollar and slowed the pound’s trajectory in a number of developing countries.
Analysts predict the naira’s future will remain closely linked to foreign reserve levels, oil market performance, and the success of current monetary and foreign exchange measures aimed at boosting market confidence and liquidity.
