Naira holds firm against British pound at N1,808/£
AI Executive Briefing
Gemini Flash AI~45s readThe Naira has shown resilience in the official NFEM market, trading at N1,808.3/£ after retreating from early November highs. While official rates remain relatively stable, the parallel market continues to face seasonal pressure, resulting in a significant premium over the official window.
Context & Background
- ✦The CBN is managing liquidity through the NFEM window, supported by net external reserves of $55.3 billion, which surpass the annual target.
- ✦Market participants are closely watching the upcoming November 24 CBN MPC meeting for signals regarding pre-2027 election liquidity management.
Key Figures & Named Entities
•CBN (Central Bank of Nigeria) maintains a 23% MPR following a 350-bp cut in September.•Net external reserves are reported at $55.3 billion, exceeding the $51.04 billion target.
Outlook & Next Steps
Markets are awaiting the CBN MPC rate decision on November 24 and monitoring UK inflation and labor data to gauge potential Bank of England rate adjustments.
Key Takeaways
AI Summary- The Naira is trading at N1,808.3/£ in the NFEM market, showing a slight retracement from its November high of N1,814.44/£.
- Parallel market rates for the British Pound remain significantly higher than official rates, trading between N1,870 and N1,900/£.
- Nigeria's net external reserves stand at $55.3 billion, exceeding the CBN's full-year target of $51.04 billion.
Key Facts:November 4: The GBP/NGN pair reached an intraday monthly high of N1,814.44/£ on November 4.September: The Central Bank of Nigeria cut the Monetary Policy Rate (MPR) by 350 basis points to 23% in September.
Editorial Excerpt
Latest market action showed the NFEM market rate for the British pound is N1,808.3/£.
Frequently Asked Questions About This Story
What is the current status of the Naira against the British Pound in the official market?
The Naira is trading at N1,808.3/£ in the NFEM market, having stabilized above the short-term psychological level of 1,780.
Why is there a discrepancy between official and parallel market rates?
Parallel market rates are under Fourth Quarter seasonal upward pressure and vary based on transaction size and location, trading between N1,870 and N1,900/£.
