Naira Strengthens as CBN Cuts Rate, Pound Drops to N1,767

The British Pound was quoted at N1,767 against the naira, reflecting the Nigerian currency's continued strength following the Central Bank of Nigeria's (CBN) decision to lower the Monetary Policy Rate (MPR) to 23%. This adjustment has not hindered the naira's upward momentum, which has seen it stabilize significantly compared to earlier in the year when it was above N1,900/£1.

Contributing factors include foreign exchange reserves exceeding $55 billion and consistent inflows from the oil and gas sector, which have bolstered market liquidity and deterred speculative attacks. Despite the CBN's rate cut, there has been growth in domestic liquidity and oversubscriptions in Treasury bill and Open Market Operations (OMO) auctions, supporting local demand for naira-denominated assets.

The British pound remains near its weakest level against the US dollar, trading around $1.32, with market participants awaiting the US Nonfarm Payrolls report for insights into future Federal Reserve policy moves.