No More N2,003/£: CBN Quotes New Exchange Rate as Naira Falls Against British Pound

• The Nigerian Naira fell against the British Pound last week, ending the week's trading session on Friday, August 16, at N2035/£
• On Monday, August 12, the local currency opened the week strongly at N2,003/£, but it eventually lost ground to the pressure of British pounds
• Reacting to the development, the Central Bank of Nigeria promised that the worst is behind the naira and advised calm

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

The Nigerian Naira lost last week to close at N2035/£ to the British Pound on the last trading day of the week, Friday, August 16.

Official CBN data showed that the local currency started the week strong on Monday, August 12 at N2,003/£ but lost to the pressure of British pounds.

On Tuesday and Wednesday, the naira further fell to N2017/£ and N2028/£ as demand for the foreign currency became stronger. On Thursday, it dipped even further.

Read also

After successfully repaying debt to China, IMF, others, Nigeria moves to borrow from another source

CBN tells Nigerians what to do

Legit.ng reported that the Central Bank of Nigeria (CBN), responding to the event, has urged composure and guaranteed that the worst is behind the naira.

Despite the naira's current devaluation in the parallel market, CBN Governor Olayemi Cardoso stressed that recent advances in Nigeria's foreign exchange management had restored confidence in the currency.

The strength of the pound sterling has drawn interest from Nigerian companies and people who intend to visit the UK. The depreciation of the naira is accompanied by Nigeria's foreign reserves hitting a record high of $35.05 billion on July 8, 2024, under President Tinubu's presidency.

Experts point out that the CBN's remarks are intended to allay concerns in the market and emphasize its initiatives to stabilize the economy. They do, however, issue a warning that rising price volatility and exchange rate discrepancies are the results of the naira's decline.

Read also

FG makes move to stabilise naira, announces sale of $500 million dollar bond

FG announces sale of $500 million dollar bond

Legit.ng reported that in an effort to address its budget deficit and support the weak naira, Nigeria, which had planned to issue a Eurobond this year, has opted to postpone the issue and instead sell its first dollar bond on the local market.

Finance Minister Wale Edun announced on Thursday at an investor conference in Lagos, the country's commercial hub, that the $500 million, five-year bond will be issued on August 19.

He stated in a Bloomberg report that the government will instead focus on Nigerians living in the country as well as the sizeable portion that resides outside as the market conditions had not been favorable to move forward with the Eurobond.

Source: Legit.ng