Naira stable against British Pound as market opens at N1,823/£1

The Nigerian naira has continued to show relative strength against the British Pound Sterling, supported by recent stability in the foreign exchange market and sustained liquidity management measures by the Central Bank of Nigeria (CBN).

Latest data released by the CBN indicated that the naira closed at N1,823 per £1 on Friday, June 5, 2026, reflecting a modest recovery during the first week of June after trading as high as approximately N1,845 per £1 on June 1.

The slight appreciation comes amid ongoing efforts by the apex bank to stabilize the foreign exchange market through tighter monetary policy and interventions in the official FX window.

CBN Policy Measures Support Naira Stability

Market analysts attribute the naira’s relative resilience to the CBN’s continued liquidity control measures, including its Monetary Policy Rate (MPR) maintained at 26.5 percent and the Cash Reserve Ratio (CRR) held at 45 percent, aimed at reducing excess liquidity in the financial system.

The apex bank has also continued efforts to channel more foreign exchange supply into the official market, even as demand pressures from importers, manufacturers and service providers remain elevated.

Despite these pressures, Nigeria’s external position remains supported by an estimated $50 billion in foreign reserves, providing the CBN with capacity to intervene in the FX market when necessary.

Oil Prices and External Earnings Support FX Buffer

The country’s foreign exchange outlook has also been buoyed by relatively strong crude oil prices, hovering around $100 per barrel, which continues to strengthen FX inflows and support reserve accretion.

However, analysts note that the sustainability of naira stability remains closely tied to global energy market performance, with any downturn in oil prices likely to place renewed pressure on the currency.

Market Dynamics and FX Segmentation

While the official market has shown signs of stability, the mid-market rate is estimated to hover between N1,810 and N1,815 per pound, reflecting ongoing divergence between official and parallel market pricing.

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In the parallel market, the pound has remained under pressure, trading above the N1,850 mark, underscoring persistent FX demand-supply imbalances.

Market observers also note that synthetic cross-currency pricing in Nigeria continues to reflect domestic dollar liquidity conditions rather than real-time coordination with global FX benchmarks.

Global Factors Influence Pound Performance

Internationally, the British Pound has also faced pressure amid a stronger US dollar, following better-than-expected US Non-Farm Payrolls data, which reinforced expectations of tighter US monetary policy.

The dollar recently reached a two-month high after robust labour market figures increased speculation of potential Federal Reserve rate hikes in 2026, limiting the pound’s gains across global markets.

Geopolitical developments have also contributed to volatility in currency markets. A recent ceasefire agreement involving Israel and Lebanon, brokered with US participation, temporarily eased tensions in the Middle East, although broader regional risks remain.

Elsewhere, reports of missile interceptions and renewed tensions involving Iran and US forces in the Gulf region have continued to influence safe-haven flows into the US dollar, sustaining pressure on sterling.