The naira appreciated against the British pound amid easing inflation, improved forex inflows, and stronger investor confidence in Nigeria.
The naira appreciated against the British pound, closing at N1,945/£ in the official market on Wednesday, as Nigeria’s foreign exchange reforms continue to boost investor sentiment.
The Central Bank of Nigeria’s (CBN) decision to float the naira and unify exchange rates has supported the local currency’s consolidation phase, with parallel market rates hovering between N1,920/£ and N2,100/£.
Improved FX inflows and moderating inflation, which has declined for the fifth consecutive month, have reinforced short-term bullish momentum for the naira. Data shows the currency gained 10.56% year-on-year and 2.45% month-on-month against the U.S. dollar.
The CBN’s efforts to promote non-dollar trade settlements and manage liquidity are also contributing to exchange rate stability. However, analysts caution that speculative trading and global dollar strength may still trigger short-term fluctuations as markets adjust to shifting monetary policies worldwide.
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