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

The Nigerian Naira has strengthened past a major resistance level against the British Pound Sterling, trading around N1,788 per pound amid robust macroeconomic fundamentals.

The appreciation is largely driven by aggressive interest rate hikes by the Central Bank of Nigeria (CBN) and the promotion of high-yield instruments such as Treasury Bills and Primary Market Auctions (PMAs).

These monetary measures have boosted institutional investments and bank holdings of Naira-denominated assets, thereby curbing excess demand for foreign currencies.

Additionally, rising capital inflows, stable foreign exchange reserves providing room for market intervention, and a softer global outlook for the British Pound have contributed to the currency’s recovery.

Currency analysts note that breaching the psychological N1,800 threshold could trigger further consolidation or push the exchange rate toward lower support levels between N1,750 and N1,700 per pound, reducing speculative arbitrage opportunities.

Meanwhile, the British Pound has held steady near the $1.35 mark against the US dollar, supported by UK growth initiatives and expectations that the Bank of England will maintain current interest rates.