Still talking business, the naira remained stable against the British pound at one thousand, eight hundred and twenty-seven naira to one pound at the start of the midweek trading session, reflecting continued stability in Nigeria’s foreign exchange market.
Market data shows the pound has been trading within a narrow range of between one thousand, eight hundred and twenty-five naira and one thousand, eight hundred and forty naira in the official Nigerian Foreign Exchange Market.
Analysts attribute the relative stability to periodic foreign exchange interventions by the Central Bank of Nigeria, aimed at reducing volatility, clearing outstanding demand and supporting investor confidence.
The apex bank has also maintained attractive yields on Open Market Operations bills and Nigerian Treasury Bills to encourage capital inflows and strengthen the naira.
Despite the short-term stability, analysts say persistent food and energy inflation continue to exert pressure on the exchange rate over the longer term.
Meanwhile, in the international market, the British pound weakened slightly against the United States dollar amid renewed geopolitical tensions in the Middle East and increased demand for the dollar as a safe-haven currency.