Nigerian Naira Hits 7-Month High Against British Pound at N1,800/£
The Nigerian naira has strengthened against the British pound, reaching its highest level in seven months at N1,800/£. This significant increase has been observed in the past few weeks, with the currency largely staying within the range of N1800-1850/£.
According to recent price action, the naira's volatility has decreased, giving way to two-way foreign exchange flows. The initial resistance levels are situated at N1,840/£, while a significant ceiling is observed between N1,880/£ and N1,900/£. A break above this level would be necessary for the medium-term outlook to favor renewed strength in sterling.
The Central Bank of Nigeria (CBN) has been working to foster greater transparency in price discovery, market-determined pricing, and liquidity injections within official foreign exchange channels. The CBN's efforts have helped contain excess demand in the parallel market and stabilize the naira in the country's official spot market.