Naira Strengthens to ₦1,840/£1 as UK Political Tensions Weigh on Pound Sterling
The Nigerian naira has recorded a fresh gain against the British pound sterling, trading at ₦1,840/£1 according to the latest Central Bank of Nigeria (CBN) data. The movement reflects renewed strength in the local currency, supported by shifting global forex conditions and increased uncertainty in the United Kingdom’s political landscape.
Market data shows that the naira has been gradually recovering from earlier lows in April, maintaining a trading range between ₦1,825 and ₦1,950 to the pound. Analysts link this resilience partly to improved liquidity management by the CBN and changing investor sentiment in global currency markets.
On the other side, the British pound has faced downward pressure due to political instability in the UK, including tensions within the ruling Labour Party and uncertainty surrounding Prime Minister Keir Starmer’s leadership. These developments have weakened investor confidence, contributing to the pound’s decline against several major currencies, including the naira.
Forex traders note that the naira’s recent movement also reflects technical market behavior, with key support levels around ₦1,750–₦1,800 and resistance near ₦1,880–₦1,900. A break above ₦1,900 could trigger renewed pressure in the parallel market, where foreign exchange demand often spikes during periods of scarcity and policy uncertainty.
Despite short-term gains, economists warn that the naira remains vulnerable to structural pressures such as inflation, limited dollar inflows, and ongoing reforms in Nigeria’s foreign exchange system. While the recent rally offers temporary relief, long-term stability will depend heavily on sustained FX liquidity, oil revenue performance, and consistent monetary policy from the CBN.
source: nairametrics