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The Nigerian currency has fallen to the N2135-N2150 bandwidth against the British pound Sterling, which has risen to a new high against the US dollar. The British central bank is expected to hold borrowing costs at 4.25% on Thursday, following a 25-basis-point cut in May.
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Key Exchange Rates:
– £1 British Pound Sterling = ₦2073.92 Nigerian Nairas
– £4000 British Pound Sterling = ₦8,320,894.20 Nigerian Nairas
– £5000 British Pound Sterling = ₦10,401,177.92 Nigerian Nairas
Naira Outlook Improves
Despite current challenges, the naira’s prospects have improved due to higher oil prices and the Central Bank of Nigeria’s (CBN) $580 million forex injection in May 2025. This move aims to stabilize the naira and restore trader confidence. Experts note that while the intervention has alleviated fears and maintained exchange rate stability, relying on external reserves without corresponding dollar inflows may not be sustainable.
Market Trends:
– Crude oil prices surged due to escalating tensions between Iran and Israel, potentially disrupting supplies from the region.
– The British pound climbed above the 1.36 mark against the US dollar, influenced by the Bank of England’s upcoming policy meeting and UK consumer inflation figures.
– The US dollar experienced declines amid geopolitical uncertainty and Donald Trump’s tariffs on US trading partners.
Economic Insights:
The naira’s stability is attributed to increased foreign portfolio investor inflows, proactive CBN market interventions, and reduced global pressures. Recent monetary and economic reforms have increased investor confidence, narrowing the official-parallel market rate differential. With the rise in crude oil prices, the naira’s prospects in the Nigerian foreign exchange market have improved
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