Naira Holds Steady at N1,765/£1 Amid FX Supply Boost

The naira has maintained a stable exchange rate of N1,765/£1 against the British pound, attributed to increased foreign exchange supply. The Central Bank of Nigeria (CBN) reported that this stability is linked to Nigeria's official foreign reserves, foreign direct investment, and oil export receipts.

The CBN has injected liquidity into the official foreign exchange markets to mitigate volatility. Recent liberalization in the FX market has reduced the gap between parallel and official rates, promoting a market-reflective pricing model.

Nigeria's gross foreign exchange reserves have risen to $55.1 billion, the highest in 18 years, while net reserves are estimated at approximately $46 billion. This provides the CBN with significant capacity to intervene during speculative attacks.

The naira's exchange rate has decreased from earlier highs of around 1,948, with technical support levels near 1,750. The Relative Strength Index indicates neutrality between buyers and sellers, with short-term price action stabilizing between 1,775/£1 and 1,790/£1.