Naira Gains Over N200/£ in 24 Hours as Banks, Others Sell British Pound at New Rate

• The Nigerian naira has rebounded to appreciate by N200/£ to close at N1,453.07/£
• The amount represents a major rebound from the earlier loss of the naira against the British Pound
• The CBN governor earlier explained that healthcare and education abroad are the major things Nigerians spend dollars on

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

The Nigerian currency has gained massively against the British Pound in just a day after the continued loss it witnessed last week.

According to the latest data provided by the CBN, the naira rebounded on Thursday, April 25to close at N1,453.07/£.

This depicted a N202/£ appreciation compared to the N1,655.20/£, which it closed the day before, Wednesday, April 24. The data showed that the local currency had started the week with a losing streak but rebounded on Thursday.

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On Monday, the naira closed at N1,542.32/£ and declined by Tuesday and Wednesday to N1,590.25/£ and N1,655.20/£ but reversed the position on the fourth trading day.

Meanwhile, in a recent update, Legit.ng reported the two things that affected the naira against major currencies of the world.

Olayemi Cardoso, governor of the CBN, recently observed that the major factors contributing to the nation's demand for foreign cash are medical tourism and the increasing number of Nigerians studying abroad.

In a speech to the House of Representatives, Cardoso revealed that, in the ten years between 2010 and 2020, Nigerians spent more than $40 billion on healthcare and education abroad, BusinessDay reported.

He stated:

"It's important to note the growing number of Nigerian students studying abroad when examining the demand side of the exchange rate."

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Expert speaks on solutions to naira volatility

Legit.ng reported that Muda Yusuf, an economist, has advocated for reducing market volatility. In his view, volatility is used to encourage speculation and fuel unpredictability.

Yusuf said this while responding to the volatility in the foreign exchange market, which has caused the Nigerian naira's value to fluctuate upward and downward in relation to the US dollar.

After falling to almost 1,900 to the dollar, the naira gained strength and was recently named the world's best-performing currency, trading at about 1,100.

Source: Legit.ng