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The British Pound last traded at N1,837/£1 against the naira on the eve of the last trading session of the week.
CBN’s latest data in the Nigerian foreign exchange market showed that GBP/NGN trading has shown mild momentum.
Its record highs and lows are about N1805/£ -N1875/£1 on average in the previous 30 days of trading.
The US dollar/Naira rate was sitting around N1,360/$ band in the Nigerian Foreign Exchange Market (NFEM)
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The Nigerian currency has been relatively steady in recent months, gaining annually on average, compared to previous years when the rate was subject to extreme volatility and recorded historic highs, at over N1,900/$ to the American dollar in 2024
The CBN introduced foreign exchange market rules designed to improve overall liquidity, market transparency, and bring them in line with international best practices. Nigerian foreign exchange reserves are near $53 billion, giving the naira a mid-term boost
The Nigerian Central Bank highlighted that average daily trading turnover in FX markets has surged significantly, from below $100 million to bands that now regularly exceed $400 million and have been known to record $1 billion per day.
The Nigerian apex bank has remained firmly hawkish, with the MPR being set at 26.5% as the aggressive intent to squeeze out liquidity and control naira circulation.
Consequently, Nigerian headline inflation trend seems to decelerate or hold steady (hovering in the mid-teens ~15.9%), supported by tight monetary policy and better food output figures at harvest times. Nigeria’s fiscal pressures, which have suffocated the currency, now look somewhat restrained, driven by consistent rises in oil output (multi-year highs) and solid trade surpluses,
International credit rating agencies such as Moody’s have rewarded the structural adjustment, as evidenced by raising Nigeria’s sovereign rating (e.g., to B3) due to better transparency and debt management.
British pound shows some upside against the Greenback amid cooler US inflation data
The British pound continues to push higher, closing in on 1.3495 against the greenback in early European trading Friday. The Sterling moved higher against the Greenback as Friday’s cooler-than-expected US Consumer and producer prices narrow the options for further interest rate hikes by the Federal Reserve (Fed). All eyes are on the US retail sales for July, which come out later Friday.
US Wholesale costs of goods and services failed to move in July, coming in flat against expectations for a 0.2% rise and down from a 0.1% fall in June, a Bureau of Labor Statistics report stated Thursday.
- The Producer Price Index (PPI) excluding food and energy also grew at a slower pace in July, +0.2% MoM vs. +0.4% the previous month; slower than the+0.3% expected by traders. Headline PPI grew 4.7% YoY in July, and core PPI grew 4.2% YoY.
- Traders then trim bets further on the possibility that the Fed hikes rates in September after US inflation pressures show signs of easing. Markets still price a 34.8% chance for a US rate hike at the September meeting, down from 40% after the PPI data was released, the CME FedWatch Tool shows.
- In addition, geopolitical developments in the Middle East could support a safe-haven currency such as the Greenback and weigh on the major pair. “The Strait of Hormuz is under Iran’s control and management”, as a senior Islamic Revolutionary Guards Corps (IRGC) official, Hossein Taeb, stated on Thursday, followed by comments from US President Trump about having “total control” over the Strait of Hormuz waterway, according to Fox News.
Growth in the UK economy reached 0.4 percent QoQ during the second quarter of 2026, slowing from 0.6 percent growth in the previous quarter, as compiled by the ONS this past Thursday.
This latest update was right in line with market analysts’ forecasts. The latest data led Bank of England Governor Mr. Huw Pill to infer that it lent credence to arguments for an extension to the current cycle of interest rate increases.
