May 04, (THEWILL) — The Nigerian naira has staged a modest recovery against the British pound, signalling improved sentiment in the foreign exchange market after recent volatility. Latest data from the Central Bank of Nigeria (CBN) shows the pound trading at ₦1,858, reflecting a ₦38 gain from the April 29 low of ₦1,896/£1.
This currency pair has remained relatively stable in the official market, though analysts expect increased volatility driven by global crude oil prices, central bank interventions, UK monetary policy, and shifting investor risk appetite. Current price action suggests consolidation, with upward-trending moving averages but weakening short-term momentum.
Market watchers note that a pullback to key support levels is typical before a sustained uptrend. If resistance around ₦1,850/£1 holds, further naira appreciation could push the pair toward ₦1,900/£1, supported in part by continued CBN interventions.
The naira’s volatility, once fuelled by panic and speculative demand, has eased considerably due to aggressive backlog clearance and tighter monetary policies. However, the currency remains sensitive to fluctuations in global oil prices, a major source of Nigeria’s foreign exchange earnings.
Meanwhile, demand for the pound remains elevated in the parallel market, where it trades around ₦1,910/£1. This is largely driven by travel, education, and precautionary demand. Despite ongoing policy efforts, a gap persists between official and unofficial exchange rates.
On the global front, the British pound has gained slightly against the US dollar, trading near 1.36. The Bank of England’s relatively hawkish stance, including signals of possible rate hikes, continues to support the currency. UK inflation rose to 3.3 percent in March, and policymakers have warned rates could climb to 4 percent if energy-driven price pressures persist.
Looking ahead, seasonal demand for foreign currency and upcoming US economic data may shape near-term currency movements.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
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