The Nigerian naira maintained its stability against the British pound in the foreign exchange market, closing at N1,837 per pound sterling as renewed strength in the U.S. dollar continued to weigh on the British currency in global markets.
Market data showed the local currency remained largely unchanged against the pound despite heightened volatility in international currency markets, where investors shifted towards the dollar following stronger-than-expected U.S. economic indicators.
Analysts said the pound has come under pressure as expectations of prolonged higher U.S. interest rates continue to support the dollar, reducing demand for sterling. The development has helped keep the naira relatively stable against the British currency even as global forex markets remain volatile.
The exchange rate hovered around the N1,830 range, with traders closely monitoring liquidity conditions in Nigeria’s foreign exchange market and offshore movements in the GBP/USD pair.
Market participants noted that demand for the pound in Nigeria remains supported by transactions such as school fees, medical travel and other international obligations. However, improved foreign exchange liquidity and the Central Bank of Nigeria’s efforts to stabilise the market have helped prevent significant depreciation of the naira against the British currency.
Financial analysts also observed that the narrow gap between the official and parallel foreign exchange markets has continued to bolster confidence in the naira, with recent policy measures helping to improve access to foreign exchange for retail users and businesses.
Going forward, analysts expect movements in the naira-pound exchange rate to remain influenced by global dollar strength, the CBN’s liquidity management measures, oil earnings and overall foreign exchange inflows into the Nigerian economy.
