Data from the Central Bank show that the value of the Nigerian naira fell sharply versus the British pound sterling in the official window. Despite more FX sales to authorized dealer banks last week, the local currency suffered a drop across the board.
The top bank recently praised the foreign exchange market’s modest spread, claiming that price discovery has effectively reduced arbitrage and speculation.
Amidst liquidity issues, the naira lost strength against major main market currencies, causing other foreign currencies to fluctuate as well. Sterling was sold for more than N2,100 on the black market, with currency dealers varying the price according to the British pound’s denomination.
The market expects the pound to remain stronger against the naira as Nigerians appetites for education and other spending in London continue to rise.
