GBP trades at N1,837/£1 as Nigeria's FX demand for pounds stays strong

British Pounds Sterling traded at N1,837/£1 against the naira as Nigeria's foreign exchange market opened Thursday, trading within a monthly band of N1,813–N1,862/£1. Short-term fluctuations are expected to hover around a reference of N1,840/£1, but underlying demand for pounds remains strong due to rising medical tourism to London and school fees for British institutions. Nigeria's central bank maintains elevated rates to curb domestic inflation, while the Bank of England holds its rate at 3.75% amid cautious policy loosening, keeping London yields favorable and supporting the pound. Structural demand from trade, refined imports, and external debt continues to back medium- and long-term naira depreciation against the pound, with FX receipts tied to crude oil production and international oil prices. Market liquidity benefits from broad external inflows, boosting foreign reserves. The pound's upside is seen toward the previous month's monthly high close at N1,850/£1, with further upside possible if buyer conviction holds. For Nigerians facing tuition, medical travel, or import costs, the persistent strength of the pound means higher naira outlays unless hedged. Will you lock in current rates for upcoming education or health-related expenses, or wait for potential further naira weakening before converting?

SOURCE: https://nairametrics.com/2026/08/06/naira-holds-steady-at-n1837-1-as-dollar-squeezes-british-pound/