Naira strengthens against British Pound Sterling, hits N1,788/£

The Nigerian naira has strengthened against the British Pound Sterling, reaching a rate of N1,788 per £. This increase occurred as the currency surpassed a psychological resistance level at N1,800/£, trading within a range of N1,750/£ to N1,850/£. The Central Bank of Nigeria (CBN) played a key role in this strengthening through aggressive interest rate hikes and promotion of high-yield assets like T-Bills and PMAs.

These actions incentivize institutional investment and increase the supply of foreign currencies, reducing demand for the British pound. The overall health of the Nigerian economy, coupled with stable oil production and rising global oil prices, has also contributed to the Naira's appreciation. Additionally, reductions in Bank of England interest rates and potential economic downturns in the UK could further weaken the pound, aiding the Naira's recovery.

Technical analysts noted that the breach of the N1,800/£ level often indicates support, with price consolidation between N1,750/£ and N1,850/£ before potential further declines. The British Pound is expected to trade between 1.3490 and 1.3540, with current forecasts indicating a range trade rather than a sustained decline. Geopolitical tensions and safe-haven positioning in the US dollar continue to influence these currency dynamics.