Naira remains strong against British pound, trades at N1,823/£1

The Nigerian naira continued to gain strength against the British pound in the foreign exchange market.

According to the latest data from the Central Bank of Nigeria (CBN), the naira closed at N1,823 per pound on Friday, June 5, 2026.

This represents a slight improvement from the beginning of June when the exchange rate was around N1,845 per pound.

The appreciation comes as the CBN continues efforts to manage liquidity and stabilize the foreign exchange market. The bank maintained its Monetary Policy Rate (MPR) at 26.5% and kept the Cash Reserve Ratio (CRR) at 45% to reduce excess liquidity in the financial system.

Nigeria’s foreign reserves, estimated at about $50 billion, have also helped support the naira. High crude oil prices, currently around $100 per barrel, have boosted the country’s foreign exchange earnings and reserves.

Market analysts noted that even though the British pound gained value against the US dollar in international markets last week, the naira’s strength in Nigeria reduced the pound’s value in the domestic market.

Despite improvements in the official market, the CBN continues to face challenges in increasing the supply of foreign currencies. Demand from manufacturers, importers, and service providers remains high, putting pressure on exchange rates.

While the official exchange rate has remained around N1,810 to N1,815 per pound, the parallel market rate has stayed above N1,850 per pound.

Analysts say developments in global energy markets will continue to affect the naira. Strong oil prices could help the CBN maintain foreign reserves and support the local currency, while weaker oil demand or production could put pressure on the naira.

Pound Under Pressure Globally

The British pound has also faced pressure internationally following stronger-than-expected US employment data, which strengthened the US dollar.

The pound fell below 1.34 against the dollar, declining by about 0.37% in recent trading sessions. The stronger US dollar followed positive US Non-Farm Payroll (NFP) figures, which increased expectations that the US Federal Reserve may maintain higher interest rates.

Geopolitical developments in the Middle East have also influenced currency markets. Although a ceasefire agreement helped ease some concerns, tensions remain in the region, keeping investors cautious.

Analysts believe the US dollar could remain strong if geopolitical risks continue and if expectations of tighter US monetary policy persist.

Traders are also watching upcoming US economic data, particularly employment figures, which could influence future Federal Reserve decisions and affect movements in global currency markets.