Pound Gains Strength Against Naira Amid Improved FX Liquidity

The British pound has gained strength against the Nigerian naira, closing at about N1,837 ahead of the final trading session of the week. The pound-to-naira exchange rate has been relatively stable in recent weeks, trading within an estimated range of N1,805 to N1,875 over the past 30 days.

The US dollar, meanwhile, traded around the N1,360/$ level in the Nigerian Foreign Exchange Market (NFEM), reflecting the relative stability that has characterised the naira in recent months. This comes as Nigeria's foreign exchange reserves have provided additional support for the naira and strengthened the country's external position.

The Central Bank of Nigeria has reported a significant increase in average daily foreign exchange turnover, from levels below $100 million to more than $400 million on a regular basis, with some trading days recording turnover of up to $1 billion. The CBN has maintained a tight monetary policy stance, with the Monetary Policy Rate (MPR) currently at 26.5 percent, as the apex bank continues efforts to control liquidity and contain inflationary pressures.