The Nigerian Naira started the first trading week of March 2026 on a remarkably steady note against the British Pound. This stability comes as the market reacts to the Central Bank of Nigeria’s recent shift toward easing its monetary policy. According to the latest data from the Nigerian Foreign Exchange Market and reports from Reports, the Naira is holding its ground firmly as price discovery continues into the new month.
In the official window, the day began with the Naira quoted at 1,826.51 per Pound. While there was some minor early morning movement that saw the rate tick up to 1,828.14, it quickly recovered to settle around 1,825.26 by mid-morning. This resilience is largely attributed to the central bank’s decision last week to cut the interest rate to 26.5%, a move that signals growing confidence in the country’s cooling inflation. By ensuring steady liquidity, the apex bank has managed to prevent the usual sharp spikes in the value of the Pound that often happen at the start of a month.
Over in the parallel market, the Pound is currently trading between 1,842 and 1,855. Interestingly, the gap between the official and black market rates has stayed near a historic low of about 1.2%. Currency traders in major hubs like Lagos and Abuja have noted that while people still need Pounds for school fees and international travel, the frantic “panic buying” of the past has largely disappeared. Because foreign exchange is now more accessible through official channels, the informal market has lost its appeal for big buyers.
Several homegrown factors are helping the Naira stay strong. Nigeria’s foreign reserves have climbed to a 13-year high of over 50 billion dollars, giving the government a massive safety net to manage market swings. Additionally, inflation has slowed down for ten months in a row, hitting 15.10% in January. This trend has started to restore the actual purchasing power of the Naira, making it much tougher when measured against global currencies like the Sterling.
Furthermore, steady oil production at 1.46 million barrels per day is ensuring a consistent flow of dollars into the economy. Even with the slight reduction in interest rates, the Nigerian market remains attractive to foreign investors who are looking for high yields in a stable environment.
Market observers speaking toReports suggest that the Pound will likely stay within the 1,820 to 1,835 range in the official window for the rest of the week. This outlook depends on the central bank continuing its current strategy of supporting market liquidity and stepping in when necessary to keep things smooth.
