Demand for British Pound causes naira to sell for new price

• Tuesday's unofficial marketplace saw the naira adjacent astatine astir N2,177 to the British pound
• The worth of the Nigerian currency varied betwixt N2,100 to N2,180/£ implicit the period of April
• This is due to the fact that the British lb sterling is nether much buying unit connected the planetary market

Legit.ng writer Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

In the unofficial marketplace connected Tuesday, the worth of the naira closed astir N2,177 per British pound.

Photo Credit: Rosemary Calvert
Source: UGC

During the period of April, the Nigerian currency fluctuated betwixt N2,100 and N2,180/£ owed to heightened purchasing unit connected the British lb sterling connected the planetary market

Nigeria ranks 38th among the UK’s commercialized partners, whereas the UK is Nigeria’s second-largest trading partner.

Markets forecast that overseas investors volition play a important power successful determining the stableness of the Nigerian naira successful 2025.

According to Central Bank of Nigeria (CBN) data, the UK accounts for 50% of remittances sent by Nigerians abroad. In 2024, remittances are predicted to summation by 9% to $21 billion.

Due to humanities ties, clip portion alignment, shorter question lengths than the US and Canada, and the deficiency of connection obstacles, the UK continues to beryllium a fashionable destination for galore young Nigerians.

Following caller U.S. authorities pronouncements connected Liberation Day, the UBS Group AG updated its prediction for the GBP/USD pair, pointing to increases successful the lb and a declining U.S. dollar.

The Swiss slope said successful a missive issued by its Chief Investment Office that it present anticipates the GBP/USD speech complaint to deed 1.39 by the extremity of March 2026.

Although the British lb is not yet categorized arsenic a safe-haven currency, UBS pointed retired that its liquidity and imaginable for transportation commercialized tactics person made it much appealing.

The lb besides strengthened arsenic a effect of the UK's exclusion from Donald Trump's lists of punitive tariffs. Instead of circumstantial supplementary tariffs, the UK was lone liable to a cosmopolitan complaint of 10%.

Future commercialized accords whitethorn payment from the UK's diplomatic strategy of avoiding important retaliation actions.

Additionally, UBS warned that a planetary recession mightiness enactment pressure connected the lb because the UK's trade-dependent economy is inactive fragile.

The pound, similar the euro, exhibited haven-like behaviour during the caller dollar sell-off, contempt not being officially recognized arsenic a haven currency.

UBS emphasized the pound's comparative volatility successful examination to the euro, citing debased rates connected some currencies arsenic a effect of continued geopolitical concerns arsenic 1 factor.

Investors kept dumping the dollar owed to the uncertainty. Photo Credit: CBN
Source: UGC

ChannelsTV reported that owed to the ongoing uncertainty astir a imaginable de-escalation successful the Sino-US commercialized dispute, the dollar recovered it hard to rebound from Tuesday's ample losses.

While erstwhile President Trump claimed that advancement had been achieved and confirmed speech with Chinese President Xi Jinping, Beijing refuted these allegations.

Due to the uncertainty, investors kept dumping the dollar, which had dropped precipitously against safe-haven currencies similar the Swiss franc and the yen successful the erstwhile session.

Both the United States and China look to person loosened their positions recently, contempt the deficiency of hard impervious of a commercialized breakthrough.

China spared definite U.S. imports from its 125% tariff regime, portion the Trump medication indicated an involvement successful lowering duties.

As investors progressively crook to European assets, the euro dropped 0.15% to $1.14, though it is inactive connected people for its biggest monthly summation against the dollar successful implicit 15 years. At $1.34, the British lb was trading adjacent to a three-year high.

CBN urgently releases $197 milion into forex market

Legit.ng reported that to support capable liquidity and stabilise trading, the Central Bank of Nigeria (CBN) invested US$197.71 cardinal in the overseas currency (FX) marketplace connected Friday, April 4.

The CBN manager of the Financial Markets Department, Omolara Duke, stated successful a play circular that the transfer was made done income to authorised dealers.

The action, according to Duke, addressed the increasing volatility successful planetary fiscal markets. This came aft the United States slapped caller import duties connected a fig of economies.

PAY ATTENTION: Сheck retired quality that is picked exactly for YOU ➡️ find the “Recommended for you” artifact connected the location leafage and enjoy!

Source: Legit.ng