Naira Holds Strong Against Pound Despite CBN Rate Cut
The Nigerian naira has defied expectations and maintained its strength against the British pound, despite the Central Bank of Nigeria's (CBN) recent interest rate cut.
The CBN's latest data shows that the GBP/NGN exchange rate settled at approximately N1,762/£ at the mid-week trading session in the official market.
This is a welcome relief for the Nigerian economy, as the naira has been on a bullish run against the pound over the past several weeks, declining from early-September levels near N1,800/£ to the mid-N1,750/£ range.
The substantial increase in Nigeria's gross external reserves, which stand at $55 billion and represent multi-year highs, has provided the CBN with significant resources to intervene in the foreign-exchange market and cushion against currency collapse.