The naira traded with relative stability against the British pound on Thursday following the Bank of England’s decision to keep its benchmark interest rates unchanged.
At the official market, the pound closed at N2,035/£, reflecting a steady performance of the Nigerian currency against the UK’s legal tender.
Market data also indicates that in the parallel, or unofficial, segment, the naira has remained within a narrow consolidation band. Throughout September, the currency has fluctuated between N2,200/£ and N2,210/£, signaling limited volatility despite persistent foreign exchange pressures.
Analysts note that the Bank of England’s rate pause has calmed expectations of major shifts in the pound’s value, which in turn has helped to stabilize naira trading levels. However, traders caution that domestic foreign exchange supply constraints, coupled with strong demand for the pound among importers and travelers, continue to weigh on Nigeria’s currency outlook.
The Central Bank of Nigeria has yet to issue any new interventions in the forex market this week, but observers say sustained measures may be required to narrow the gap between official and unofficial exchange rates.
