The British pound held around N1,837 against the naira as the Nigerian currency maintained its relative stability despite growing pressure from movements in global currencies. Recent Central Bank of Nigeria (CBN) data showed mild momentum in GBP/NGN trading, with the pound moving within an estimated N1,805 to N1,875 range over the past 30 days. Meanwhile, the US dollar traded around the N1,360/$ level in the Nigerian Foreign Exchange Market (NFEM).
The naira’s recent performance marks a notable shift from the sharp volatility seen in previous years. The currency has generally remained more stable in recent months, with improved foreign exchange liquidity and stronger market activity providing some support. Nigeria’s foreign exchange reserves have also moved close to $53 billion, while average daily FX trading turnover has risen significantly, regularly exceeding $400 million and occasionally reaching the $1 billion mark.
Monetary policy has also remained a major part of the CBN’s strategy to support the naira. The Monetary Policy Rate (MPR) remains high at 26.5%, reflecting the central bank’s continued effort to control liquidity and reduce inflationary pressure. At the same time, improving oil production and stronger trade balances have helped ease some of the fiscal pressures that previously weighed heavily on the currency. These developments, alongside ongoing reforms in the foreign exchange market, have strengthened investor confidence in the naira’s medium-term outlook.
However, the pound itself is being influenced by developments outside Nigeria. Sterling climbed toward $1.3495 against the US dollar in early European trading as softer-than-expected US inflation data reduced expectations for further Federal Reserve rate increases. US producer prices were flat in July, while core producer prices rose at a slower monthly pace than expected. The changing outlook for US interest rates has given the pound some room to strengthen, although geopolitical tensions and demand for the dollar as a safe-haven currency remain potential sources of pressure.
The UK economy also expanded by 0.4% quarter-on-quarter in the second quarter of 2026, slowing from 0.6% in the previous quarter but matching market expectations. The latest economic figures could influence the Bank of England’s approach to interest rates and, in turn, the pound’s performance against major currencies. For Nigerian consumers and businesses watching the pound to naira exchange rate, the coming weeks could therefore be shaped by a mix of local FX reforms, oil revenues, monetary policy and developments in the global currency market.
source: Business day
