No More N2,000/£: Naira Rises, Pound Sterling Falls as CBN Updates Exchange Rate

• In recent years, the local currency has significantly improved in value relative to the British pound sterling
• This follows the CBN's recent implementation of a forex strategy that CBN Governor Olayemi Cardoso confirmed
• For the first time in a long time, the value of the naira relative to the British pound is less than N2,000/£

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

The local currency has recorded significant improvement against the British pound sterling in recent times.

This is coming after the CBN recently implemented a forex strategy, which CBN Governor Olayemi Cardoso confirmed.

It appears that the implementation of the forex strategy is beginning to aid the recovery in the value of the naira across markets, as analysts had anticipated.

Legit.ng reports that the naira against the British pound is valued below N2,000/£, a significant milestone in a long time. Official data from the CBN showed that the local currency closed at N1940.93/£ on Friday, December 13, 2024.

Read also

New exchange rate: Naira appreciates against US dollar in forex markets

Compared to the last trading day in the previous month, when the local currency was N2110/£, this signifies an N170/£ gain in December.

Since the Central Bank of Nigeria (CBN) launched the new electronic forex trading platform, the value of the naira, Nigeria's currency, has been appreciating.

Aminu Gwadabe, president of the Association of Bureaux De Change Operators of Nigeria (ABCON) cited a combination of market reforms, increased foreign exchange inflows, and investor confidence as the main forces behind the currency's recovery.

“The increasing level of confidence among portfolio investors has resulted in substantial dollar inflows, as evidenced by the oversubscribed bond issues. This has significantly helped the naira recover,” Gwadabe stated.

CBN speaks on circulation of old naira note

Legit.ng previously reported that the Central Bank of Nigeria refuted claims that the former series of N200, N500, and N1,000 banknotes will no longer be accepted as legal tender after December 31, 2024.

Read also

CBN releases new exchange rate as naira gains against the dollar in all markets

The CBN, in a statement issued by Sidi Hakama, acting director of corporate communications, confirmed that the Supreme Court of Nigeria's ruling on Wednesday, November 29, 2023, to allow the continued use of old naira banknotes remains in effect indefinitely.

Alongside the new notes, the Supreme Court ruled that the previous series of N200, N500, and N1,000 banknotes would remain legal tender.

Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng