The British pound traded at N1,834 against the Nigerian naira in the foreign exchange market at the opening of trading on Friday.

During the month, the currency pair fluctuated between N1,813/£1 and N1,862/£1, highlighting continued short-term volatility while remaining broadly anchored around the N1,830/£1 level.

Demand for the British pound in Nigeria has remained elevated, driven largely by increased spending on medical treatment in the United Kingdom and tuition payments for students attending British schools. Meanwhile, the Central Bank of Nigeria has maintained high benchmark interest rates as part of its efforts to curb inflationary pressures and stabilize the economy.

A sustained move above the N1,840/£1 level could strengthen bullish sentiment and trigger additional buying interest, with the British pound potentially advancing toward the previous monthly high of around N1,850/£1.

Market participants are expected to closely monitor month-end foreign exchange liquidity from authorised dealers and Bureau De Change operators, as well as the seasonal increase in FX demand that typically accompanies month-end settlement obligations and payment cycles for major companies involved in foreign exchange transactions.

Despite recent efforts to stabilise the foreign exchange market, Nigeria’s inflation rate remains significantly higher than that of the United Kingdom, continuing to exert downward pressure on the naira against the British pound. To help curb excessive exchange rate swings, the Central Bank of Nigeria has maintained regular foreign exchange sales to authorised dealers and Bureau De Change operators.

Recent economic data also indicate that Nigeria’s stronger external reserves have provided the CBN with greater capacity to intervene in the foreign exchange market, helping to moderate periods of heightened volatility.