The Nigerian naira strengthened against the British pound in recent foreign exchange trading sessions.
According to the Central Bank of Nigeria, markets now price the pound at ₦1,856 per £1.
Naira Strengthens Amid Pound Volatility
This situation shows a split trend, as sterling rises globally while the naira holds steady domestically.
In Nigeria’s forex market, traders actively price GBP/NGN mainly through dollar liquidity conditions.
Consequently, even when the pound gains against the US dollar, naira stability limits its local rise.
Moreover, market activity improved after Central Bank interventions and foreign exchange reforms.
As a result, average daily FX turnover rose from $100 million lows to $400–$600 million.
In addition, volumes sometimes exceed $1 billion, reflecting stronger liquidity across the market.
The naira recovered from April lows and showed resilience through early May trading.
Sterling Weakness Supports Local Gains
Meanwhile, political tensions in the United Kingdom weakened sterling earlier in the period.
That weakness allowed the naira to close near ₦1,850 per pound by mid-May.
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Earlier this month, traders pushed the pound as high as ₦1,883 per pound.
Thus, both sterling volatility and Central Bank liquidity actions shaped the movement.
Furthermore, higher domestic yields attracted investor demand for naira assets.
In the United Kingdom, the Bank of England maintains cautious interest rate policy.
Strong services activity and wage growth keep monetary conditions tight and support sterling strength
GBP/NGN now trades within a narrow ₦1,830 to ₦1,860 range.
Global Risk And Inflation Outlook
Globally, sterling trades around 1.348 against the US dollar in midweek sessions.
At the same time, geopolitical tensions involving Iran and US actions increase market uncertainty.
Consequently, investors demand safe-haven assets, especially the US dollar.
However, diplomatic talks slightly improve global risk sentiment and ease pressure.
In addition, UK inflation slows to 2.8% and reduces expectations of near-term rate hikes.
Overall, GBP/NGN remains stable as liquidity, policy, and global forces actively shape the market.