Pound trades at N1,827/£1 as NAFEM FX steadies, eyes resistance
The British pound traded at N1,827 to £1 when the Nigerian foreign exchange market opened mid‑week, having pulled back slightly from tests below N1,832/£1. The pair has been trading in a tight band between N1,825 and N1,840 as the Central Bank of Nigeria continues to inject foreign exchange to smooth volatility and clear backlogs. Immediate resistance sits between N1,845 and N1,850, with the next major ceiling seen around N1,880-N1,900. Support lies between N1,815-N1,825, while the longer‑term floor sits around N1,780-N1,800.
For Nigerians, this means the cost of importing goods priced in pounds – from machinery to school fees abroad – remains relatively stable but still elevated compared with earlier months. Any break above N1,850 would make imports more expensive and could add pressure to already high food and energy inflation. Conversely, a move back toward N1,780 would ease some of that cost pressure.
What should you watch? If the CBN keeps draining excess naira liquidity, the naira may gain a bit of strength; watch for any announcements on FX interventions. Also keep an eye on global oil prices and UK politics – the looming Conservative leadership contest, with Andy Burnham expected to win, could keep sterling steadier against the dollar steadier against the dollar, which in turn influences the pound‑naira cross.