Naira tumbles above the N2,000 mark against British pound

The naira started Thursday’s session at the lower end of its range versus the British pound sterling and broke through the 2,000 barrier.

Meanwhile, the pound hit a four-month high against the US dollar as data indicated that the UK economy expanded faster than anticipated in May, lessening the likelihood of an August rate cut.

The Office for National Statistics released flash statistics on Thursday, indicating that the UK economy grew by 0.4 percent in May.

Following the announcement, the value of the British pound surged to a four-month high against the US dollar.

The pound sterling traded at N2,020 against the local currency in the black market despite improved conditions in Nigeria’s FX assets held by the CBN.

The pullback in the naira comes at a time when Nigeria’s reserves reached $35.05 billion as of July 8, 2024, the highest under Tinubu’s presidency.

The depreciation of the naira in NAFEM coincided with a recent increase in price volatility, with the widening exchange rate disparity once again.

The Nigerian currency depreciated by N29 to trade at N1,561/$1 late Wednesday, down from N1,532/$1 on Tuesday, according to data from the Nigerian Autonomous Foreign Exchange Market (NAFEM).