On Wednesday, the naira weakened against the British pound in Nigerian forex markets.
This happened even though sterling also weakened in global currency trading.
Naira Trades Under Pressure
The Central Bank of Nigeria reported that the pound traded at ₦1,896.
This shows continued pressure on the naira despite sterling’s weaker global performance.
The naira has remained within a range of ₦1,825 to ₦1,950/£.
Market movements continue to reflect policy decisions, liquidity conditions, and shifts in investor sentiment.
Expectations around Bank of England interest rates continue to influence demand for sterling in Nigeria.
At the same time, the Central Bank of Nigeria maintains a Monetary Policy Rate of 26.5%.
This high interest rate attracts foreign investors seeking stronger returns in Nigeria.
It also supports the naira through carry trade inflows, which help slow its depreciation.
Policy Support And Inflation Controls
Government fuel price caps have helped stabilise inflation in transport and aviation.
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Jet fuel prices remain between ₦1,760 and ₦2,037 per litre.
While this policy reduces inflation pressure, it also places strain on public finances.
Meanwhile, month-end demand for foreign currency continues to weaken the naira.
Businesses typically increase dollar demand to settle imports and external payments during this period.
Analysts note that these seasonal pressures add to short-term volatility.
Global Risks And Sterling Outlook
Global risks continue to shape currency movements and investor behaviour.
Rising US-Iran tensions could strengthen the US dollar and affect both sterling and the naira.
Technical indicators show mixed signals for the GBP/NGN pair.
It trades below its 15-day moving average, suggesting short-term weakness in sterling.
However, it remains above its 200-day moving average, confirming long-term pound strength over the naira.
In global markets, sterling trades near $1.35 as investors shift towards the US dollar for safety.
Geopolitical uncertainty and UK political risks, including upcoming elections, continue to weigh on sentiment.
