CBN Sets New British Pound Rate as Naira Strengthens

The Central Bank of Nigeria (CBN) has confirmed the exchange rate for the British pound at about N1,762 to £1 in the official market. This rate reflects a strengthening of the naira, which has improved from around N1,800 earlier in September and from approximately N1,948 at the beginning of 2026.

The CBN recently lowered its benchmark interest rate to 23%, a reduction of 350 basis points from 26.5%. Despite the typical expectation that lower interest rates would decrease the appeal of naira-denominated assets, the naira has remained resilient against major foreign currencies.

This resilience is attributed to improved dollar liquidity and stronger external buffers, with CBN Governor Olayemi Cardoso noting that Nigeria's external reserves have risen above $55 billion. The stability of the naira is also influenced by Nigeria's status as a major crude oil exporter, affecting dollar inflows and the overall foreign exchange market.