Naira Holds Steady at N1,844/£ Amid Market Stability Efforts

The Nigerian naira maintained relative stability against the British pound, trading at an average of N1,844/£ during midweek sessions in the official market.

Data from the Nigerian Foreign Exchange Market showed the currency holding near the N1,850 resistance level, supported by investor confidence and monetary policy signals from the Central Bank of Nigeria.

Market participants indicated that the apex bank remains prepared to intervene in the foreign exchange market if external shocks intensify, particularly amid geopolitical tensions affecting global financial flows.

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The naira has shown resilience in recent sessions despite pressure on emerging market assets, as investors continue to shift toward safer assets such as the US dollar. However, demand for high-yield Nigerian instruments, including government bonds and equities, has helped sustain the local currency.

The Central Bank recently reduced the Monetary Policy Rate from 27 per cent to 26.5 per cent, signaling confidence that inflation is moderating. Inflation is projected to decline to 12.94 per cent in 2026, while foreign reserves have reached their highest level in over a decade.

Analysts noted that the pound-naira pair is currently in a downward trend, suggesting relative strengthening or stabilization of the naira against the British currency. Technical indicators also point to a potential slowdown in the pound’s upward momentum.

Globally, the British pound has recorded gains against the US dollar for three consecutive sessions, trading near 1.3370 during early European market activity. The US Dollar Index hovered near a three-day low as investors awaited policy direction from the US Federal Reserve.

Expectations that the Federal Reserve will maintain interest rates between 3.50 per cent and 3.75 per cent have influenced market sentiment, while rising oil prices continue to shape inflation expectations worldwide.

In the United Kingdom, the Bank of England is expected to hold its benchmark interest rate at 3.75 per cent amid renewed inflation concerns linked to higher energy prices. Economic projections indicate slower growth, with GDP expected to expand by 1.0 per cent in 2026, alongside rising unemployment.