Naira lost, Pound Sterling gains as CBN quotes new exchange rate

• A CBN data shows that at the end of July, the value of the naira relative to the British Pound was above N2,000/£
• The local currency, which began the month at N1,913/£, dropped more than N150/£, ending the month at N2068/£
• Investigations showed that the rising inflation tallies with ongoing economic challenges and market responses to inflation data

The naira to the British pound ended the month of July above N2,000/£, a CBN data has shown.

Currency depreciation comes amid the ongoing economic challenges and market responses to inflation data. Photo Credit: CBN
Source: UGC

According to the data, the local currency, which started at N1,913/£, lost over N150/£ to close the month at N2068/£ by the end of the month.

The local currency traded within the bracket of N1,900/£ and N2,100/£ during the period as the CBN continued to intervene by selling currencies to traders to prevent the naira from rapidly depreciating.

Legit.ng earlier reported that the British pound sterling reached N2,035/£1 at parallel markets across Nigeria, a one-year high, as a result of rising inflation figures and increased demand.

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The increase coincides with persistent economic difficulties and market reactions to inflation statistics.

According to investigations, currency traders have been accumulating pounds, which has increased demand for some days.

The Bank of England appears poised to lower interest rates on Thursday, according to Reuters, after maintaining them at a 16-year high of 5.25% for the previous year. However, markets and economists are not at all confident that the British central bank would make the drastic move.

CBN Predicts New Naira to Dollar Exchange Rate

Legit.ng 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