Naira Plunges as British Pound Slips Against US Dollar

The British Pound's value against the Nigerian Naira has seen fluctuations in recent times. At the start of Friday's trade session, the pair was trading at N1,834/£1. The rate had previously traded between N1,813/£1 and N1,862/£1 this month, indicating volatility around the N1,830/£1 area.

The high demand for pounds in Nigeria is attributed to increased medical tourism to London and school fees payments in British schools. This has resulted in persistent buyer sentiment pushing the price above N1,840/£1.

Market analysts expect buying pressure to continue, potentially reaching resistance at the previous monthly high close of N1,850/£1. However, inflationary pressures in Nigeria are higher compared to the UK's inflation rate, contributing to the naira's depreciation.