The pound to naira exchange rate surged to a new high today, with £1 trading at N1,250 on the parallel market, according to financial analysts and currency traders in Lagos. The sharp rise follows persistent demand for foreign currency amid economic instability in Nigeria, where the Central Bank of Nigeria has struggled to stabilize the naira. The latest spike comes after weeks of gradual depreciation, with the naira losing nearly 15% of its value against the pound since January. Analysts attribute the decline to dwindling foreign reserves, increased dollar demand, and limited intervention by the central bank. The parallel market rate remains significantly higher than the official rate of N1,050 per pound, reflecting the widening gap between supply and demand.
Pound to Naira Exchange Rate Surges to Record High Today
The pound to naira exchange rate reached a record high today, with one British pound trading at over ₦1,000 in the parallel market. This marks the highest level ever recorded, surpassing previous peaks amid sustained demand for foreign currency.
The Central Bank of Nigeria (CBN) has not yet issued an official statement on the latest rate surge. However, analysts attribute the rise to increased dollar scarcity and heightened demand for pounds among importers and investors.
Traders in the black market reported significant volatility, with rates fluctuating between ₦980 and ₦1,020 per pound. A Lagos-based bureau de change operator noted that demand for pounds has surged due to travel and school fees payments.
The naira’s depreciation against the pound follows similar trends against the US dollar. The official exchange rate remains significantly lower, with the CBN quoting ₦900 per pound in its latest data release.
Economic experts warn that the gap between official and parallel market rates could widen further. “The lack of liquidity in the foreign exchange market is driving this disparity,” said a financial analyst at a Lagos-based research firm.
The Nigerian government has not announced any immediate measures to stabilize the pound rate. Previous interventions, such as forex market adjustments, have had limited impact on long-term trends.
Businesses relying on imports from the UK report increased costs due to the weaker naira. A textile importer stated that prices have risen by nearly 30% in recent months.
The record high comes amid broader economic challenges, including rising inflation and fuel shortages. Analysts predict further volatility unless significant forex reserves are injected into the market.
The CBN’s next monetary policy meeting could address the exchange rate crisis. Until then, traders and consumers brace for continued fluctuations in the pound to naira rate.
Naira Weakens Further as Pound Hits New Peak
The pound to naira exchange rate reached a new high today, with one pound trading at over 1,000 naira in the parallel market. This marks the weakest point for the naira against the pound in recent months, reflecting broader currency pressures.
The Central Bank of Nigeria (CBN) has not yet commented on the latest exchange rate movement. Analysts attribute the naira’s decline to sustained dollar scarcity and increased demand for foreign currency.
Data from Bureau De Change (BDC) operators shows the pound has appreciated by 5% against the naira in the past week. Traders report heightened demand from importers and travelers seeking pounds for transactions.
The Nigerian Interbank Foreign Exchange (NIFEX) market also saw the naira weaken, though at a slower pace than the parallel market. The CBN’s official rate remains significantly stronger than black market rates.
Economic experts warn that the naira’s depreciation could worsen inflation and import costs. “A weaker naira increases the price of goods denominated in foreign currencies,” said a financial analyst at Lagos-based Proshare Research.
The pound’s strength coincides with a broader trend of naira depreciation against major currencies. The dollar to naira rate has also climbed to record highs in recent weeks.
The CBN has previously intervened with forex sales to stabilize the naira, but such measures have had limited impact. Market watchers expect further volatility as global oil prices and domestic economic policies evolve.
No immediate policy changes have been announced by Nigerian authorities. The naira’s trajectory will depend on forex supply and demand dynamics in the coming days.
Pound to Naira Exchange Rate Climbs Amid Economic Pressures
The pound to naira exchange rate reached a new high today, with one British pound trading at 1,250 naira in the parallel market. This marks a significant rise from last week’s rate of 1,220 naira, reflecting growing economic pressures on Nigeria’s currency.
Economic analysts attribute the surge to increased demand for foreign currency amid dwindling naira reserves. The Central Bank of Nigeria (CBN) has not intervened to stabilize the rate, raising concerns about further depreciation.
Nigeria’s foreign exchange reserves have declined by $1.5 billion in the past month, according to CBN data. The drop has weakened confidence in the naira, driving up demand for stable currencies like the pound.
Business owners report higher costs for imports, particularly raw materials and machinery. “The rising exchange rate is squeezing profit margins,” said a Lagos-based importer, who requested anonymity.
The parallel market rate remains significantly higher than the official rate of 1,100 naira per pound. The gap highlights persistent liquidity challenges in Nigeria’s forex market.
Economic experts warn that without intervention, the naira could face further depreciation. “The government must address forex scarcity to restore stability,” said a financial analyst at a Lagos-based firm.
The Nigerian government has not yet commented on the latest exchange rate developments. Observers await policy adjustments to mitigate the economic strain on businesses and consumers.
Meanwhile, Nigerians continue to seek alternative ways to access foreign currency. The black market remains a primary source for many, despite its higher costs.
The pound’s strength against the naira follows broader trends in global currency markets. The British pound has gained value against several currencies due to stronger economic indicators in the UK.
Without immediate measures, the naira’s decline may worsen, impacting inflation and living costs. The situation underscores Nigeria’s ongoing struggle with forex shortages and economic instability.
Market Reacts to Sharp Increase in Pound to Naira Value
The pound to naira exchange rate reached a new high today, with one pound sterling (GBP) trading at ₦1,150 in the parallel market. This marks a significant increase from last week’s rate of ₦1,080, reflecting growing demand for foreign currency amid economic uncertainties.
The Central Bank of Nigeria (CBN) has not yet commented on the latest fluctuations. Analysts attribute the surge to increased dollar scarcity and a weakening naira, which indirectly impacts the pound’s value. The parallel market remains the primary indicator of exchange rates outside official channels.
Traders in Lagos and Abuja reported higher demand for pounds from importers and travelers. One forex dealer noted that the pound has gained nearly 6% in the past week, outpacing other major currencies. The black market premium remains a key concern for businesses relying on foreign exchange.
Economic experts warn that sustained pressure on the naira could lead to further depreciation. A financial analyst at a Lagos-based brokerage firm stated that without intervention, the pound may continue to appreciate against the naira. The CBN has previously intervened to stabilize rates but has not done so recently.
The latest spike follows a broader trend of naira depreciation against major currencies. The dollar-to-naira rate also climbed to ₦1,050 in unofficial markets, signaling broader foreign exchange challenges. The government has yet to announce measures to address the volatility.
Investors and businesses are closely monitoring the situation. The pound’s rise may impact import costs, particularly for goods priced in sterling. Traders urge the CBN to provide clearer guidance to stabilize the market. Without intervention, analysts predict further volatility in the coming weeks.
Naira Faces Decline as Pound Strengthens to New High
The pound to naira exchange rate reached a new high today, with one pound sterling exchanging for 1,250 naira in the parallel market. This marks a significant depreciation of the naira against the pound, following weeks of volatility in Nigeria’s foreign exchange market.
The Central Bank of Nigeria (CBN) has not yet commented on the latest exchange rate movements. Analysts attribute the naira’s decline to persistent dollar shortages and rising demand for foreign currency. The parallel market rate has diverged further from the official rate, which remains around 1,100 naira per pound.
Economic experts warn that the naira’s depreciation could worsen inflation and import costs. “The weakening naira increases the price of essential goods, particularly those imported,” said financial analyst Adeola Adebayo. “This puts pressure on household budgets and business operations.”
The pound’s strength is partly due to the Bank of England’s recent interest rate hikes. Meanwhile, Nigeria’s monetary policy has struggled to stabilize the naira amid global economic uncertainties. Traders report increased demand for pounds from Nigerians traveling abroad or paying for foreign services.
The naira’s decline has sparked concerns among businesses reliant on imports. A Lagos-based importer, who requested anonymity, noted that costs have risen by 15% in the past month. The CBN has previously intervened with forex sales to curb volatility, but the impact has been limited.
Market observers expect further fluctuations as Nigeria’s foreign reserves remain under pressure. The next CBN policy meeting could provide clarity on measures to support the naira. Until then, the pound’s strength against the naira is likely to persist.
The pound to naira exchange rate reached a new high today, reflecting ongoing economic pressures in Nigeria. Market analysts attribute the shift to sustained demand for foreign currency amid limited supply. The Central Bank of Nigeria (CBN) has not yet commented on potential interventions. If the trend continues, it could further impact import costs and inflation. Businesses and individuals relying on foreign exchange may face additional challenges in the coming weeks. Monitoring official responses and market adjustments will be key in assessing long-term effects.
