Naira Holds Steady as Pound Sterling Sees Further Upside

The British Pound Sterling traded at N1,837/£1 against the naira in Nigeria's foreign exchange market on Thursday. This is within the band of N1,813/£1 and N1,862/£1 seen this month.

According to analysts, short-term fluctuations are likely centered around a reference price of N1,840/£1. However, strong demand for pounds in Nigeria remains driven by London's rise as a medical tourism destination and British school fees.

Nigeria's central bank rates remain elevated as the country tries to curb domestic price gains. As a result, buyer conviction is pushing the pair past N1,840/£1 support, with further upside expected.

The pound sterling's upside remains towards the previous month's monthly high close of N1,850/£1. Underlying structural demand in Nigeria's economy continues to support appreciation against the British Pound Sterling, particularly from trade, refined imports, and external debt.