The naira remained relatively stable against the British pound at the Nigerian Foreign Exchange Market (NFEM), closing at about N1,808.30 per pound in the latest trading session.
The latest rate represents a retreat from the monthly high of N1,814.44 recorded on November 4, as the pound-naira pair continued to trade within a relatively narrow range.
The pair began November at around N1,802.21 per pound before rising to its monthly high and subsequently easing to an intra-month range of about N1,783 to N1,788.
Market data showed the pound-naira rate stabilising around N1,786.51 during intraday trading, remaining above the N1,780 psychological level.
However, the parallel market continued to command a significant premium, with the pound trading at about N1,870 to N1,900, depending on location and transaction size.
The recent movement in the official market comes amid seasonal foreign exchange demand from importers and travellers, as well as foreign portfolio flows.
Nigeria’s external reserves remained relatively strong at about $55.3 billion, supporting the Central Bank of Nigeria’s capacity to provide liquidity through the official FX market.
The CBN had earlier cut the Monetary Policy Rate by 350 basis points to 23 per cent as inflation moderated.
Market participants are also watching the CBN’s November 24 Monetary Policy Committee meeting, alongside UK inflation and labour-market data, for possible signals that could influence the pound and naira in the weeks ahead.
The outlook for the official GBP/NGN rate remains within a relatively narrow range of N1,775 to N1,815, while seasonal demand could continue to widen the premium in the parallel market.
