Naira strengthens to N1,800/£ against British Pound, highest level in 7 months
The British Pound is currently trading around N1,800/£ against the naira in the official market, the strongest level for the naira since late February. The post Naira strengthens to N1,800/£ against British Pound, highest level in 7 months appeared first on Nairametrics .
The Nigerian naira has strengthened to N1,800 per British Pound, marking the highest level in seven months in the official market. This surge occurred as the local currency displayed notable resilience against the British Pound over recent weeks, typically trading within the N1,800-1,850 range. Recent trading sessions have been characterized by a narrower, range-bound consolidation, as heightened volatility from previous weeks subsides, enabling two-way foreign exchange flows.
Key support is found at N1,750/£, while initial resistance is identified around N1,840/£, with a critical support level ranging between N1,880 and N1,900. Should the naira break above N1,900/£, it could indicate a medium-term positive outlook for the sterling pair. To prevent a decline toward yearly lows, maintaining support at the N1,780/£ level is crucial, bolstered by a technical support floor around N1,750/£.
The Central Bank of Nigeria (CBN) is actively promoting greater transparency in price discovery, market-determined pricing, and liquidity injections within official foreign exchange channels. By effectively managing demand and supply demands, the CBN has helped curb excess demand in the parallel market and stabilize the naira in the official spot market.
High interest rates set by both the CBN, which has aggressively raised the Monetary Policy Rate to curb inflation, and the Bank of England (BoE), have created a tug-of-war situation between the two central banks.
These measures by the CBN, alongside the UK's economic performance, inflation data, and the BoE's policy outlook, influence the strength of the Nigerian pound relative to emerging-market currencies. The near-term outlook suggests continued range-bound consolidation for the pair over the next few weeks, barring significant macroeconomic shocks related to crude oil revenue or actions by the BoE. Analysts predict the naira will remain within a range of approximately N1,750/£ to N1,860/£, barring unforeseen events.
Written by urgent.news from Nairametrics's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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