By Atoyebi Nike
The naira remained relatively stable against the British pound after the Bank of England (BoE) left interest rates unchanged at 4 percent. On Thursday, the pound closed at N2,035/£ at the official market, while in the parallel market it traded between N2,200/£ and N2,210/£.
The Central Bank of Nigeria’s decision to float the naira and harmonize multiple exchange rates has boosted market confidence, with analysts suggesting the currency may gain short-term momentum. Nigeria’s inflation rate eased for the fifth consecutive month to 20.12% in August, providing some relief to households burdened by high living costs.
In trade relations, British High Commissioner to Nigeria Richard Montgomery disclosed that bilateral trade reached a record £7.9 billion (about N16 trillion). He said the UK-Nigeria Enhanced Trade and Investment Partnership (ETIP) is helping to remove non-tariff barriers and expand opportunities for Nigerian goods under the Developing Countries Trading Scheme (DCTS).
Meanwhile, divisions persist within the BoE as members debate further easing amid weak UK growth and stubborn inflation, which stood at 3.8% in August, nearly double the 2 percent target. While some Monetary Policy Committee members pushed for another rate cut, Governor Andrew Bailey has called for a gradual approach.
The US dollar also firmed, with the Dollar Index closing at 97.4, supported by expectations of gradual Federal Reserve rate cuts following the first reduction since December 2024.
