Bad news for naira as local currency weakens against British Pound amid demand pressure

• The local currency ended August lower than it began, with the British pound surpassing the naira last month
• According to CBN data, as of August 31, 2024, the local currency closed at N2,105/£
• This shows a never-ending battle as demand for local currencies and the British pound rises

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

The British pound overpowered the naira last month as the local currency closed the month of August weaker than it started.

The local currency changed throughout the month, closing at a rate of between N2,000 and N2,100 per £.Photo Credit: CBN, contributor
Source: Getty Images

Data presented by the CBN showed that the local currency closed at N2,105/£ as of 31st August 2024. The amount is a N55/£ dip compared to the amount it started the month at N2,050/£ at the beginning of the month.

During the month, the local currency fluctuated to close mostly within the range of N2,000/£ and the N2,100/£.

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This depict a continuous struggle as demand for the British pound and other foreign currencies heightens.

Speaking about the development in the forex market, Aminu Gwadabe told Legit.ng that the president of the Association of Bureaux De Change Operators of Nigeria (ABCON), said that the CBN should shift its focus from demand measures to supply measures.

He called on the apex bank to make available forex to BDCs to ease the pressure on demand.

"There is also a need for alignment of monetary and fiscal policies. The CBN has remained resolute in its mix of interest rate and FX interventions to create liquidity in the market, but there is a need for serious improvements in engaging and collaborating with critical stakeholders.

CBN predicts new naira to dollar exchange rate

Legit.ng had earlier reported that the Central Bank of Nigeria (CBN) expects the naira to appreciate in the foreign exchange markets driven by better crude oil production and exports.

The apex bank stated this in its latest report titled "Macroeconomic Outlook: Price Discovery for Economic Stabilisation".

According to CBN, the rise in crude export will help bring more forex into the market, reduce depreciation pressures, and strengthen the naira.

Source: Legit.ng