Naira Holds Steady as CBN Defends Against Pound's Comeback

The Nigerian naira has traded at N1,838/£1 against the British pound in the Nigerian market, following the pound's comeback in the international foreign exchange market.

This development comes as the UK economy benefits from robust macroeconomic data and global uncertainty. Meanwhile, the Central Bank of Nigeria (CBN) has employed a proactive defense strategy to conserve the naira in a high-yield environment, which has led to increased FX liquidity and supported the currency.

The CBN's policy approach has also narrowed the widening gap between rates in the official and parallel markets, reducing speculative hoarding and arbitrage. As a result, foreign portfolio investors have been attracted back into naira-denominated money market instruments, such as Treasury bills.