The Nigerian naira maintained its gains against the British pound sterling in the latest foreign exchange market trading, despite the pound’s resilience against the US dollar in global markets.
Data from the Central Bank of Nigeria (CBN) showed that the naira closed at N1,833/£1, reflecting continued stability in the domestic foreign exchange market.
The local currency’s strongest performance against the pound this year was recorded on April 16, when it appreciated to about N1,814/£1, its highest level against the British currency in 2026.
Analysts attribute the naira’s relative strength to improved dollar liquidity and tighter monetary conditions, which have helped offset gains recorded by the pound in international markets. As a result, movements in the GBP/NGN exchange rate continue to be driven largely by domestic dollar supply dynamics rather than real-time shifts in global currency markets.
The exchange rate environment has also been supported by the CBN’s monetary tightening measures. The apex bank retained the Monetary Policy Rate (MPR) at 26.5 per cent and maintained the Cash Reserve Ratio (CRR) at 45 per cent to curb excess liquidity and support the naira.
Nigeria’s foreign reserves, estimated at nearly $49.3 billion, have also strengthened the CBN’s ability to manage volatility in the foreign exchange market, while relatively firm crude oil prices continue to provide support for external reserves.
Despite persistent structural challenges and inflationary pressures, Nigeria’s high interest-rate environment has enhanced the attractiveness of naira-denominated assets and reduced pressure from speculative currency trades.
Pound remains firm against dollar
Meanwhile, the British pound traded around $1.3460 against the US dollar, supported by easing inflation concerns and shifting expectations around monetary policy in major economies.
Market sentiment remained cautious amid uncertainty surrounding geopolitical developments and ongoing negotiations involving the United States and Iran.
Recent US inflation data came in below expectations, strengthening hopes that the US Federal Reserve may adopt a less aggressive monetary policy stance. Lower crude oil prices have also helped ease concerns about renewed inflationary pressures.
In the United Kingdom, softer labour market conditions, moderating inflation, and slowing economic growth have reinforced expectations that the Bank of England (BoE) may proceed cautiously with future interest-rate decisions.
The BoE’s benchmark interest rate currently stands at 3.75 per cent, with investors divided over whether policymakers will opt for another rate increase or maintain the current stance amid weak domestic growth and lingering inflation risks.
Analysts said the interplay between global monetary policy expectations, geopolitical developments, and domestic economic fundamentals will continue to shape movements in both the pound and the naira in the months ahead.
