The Nigerian naira remains strong against the British Pound Sterling, based on the most recent Nigerian foreign exchange market price action.
CBN’s latest data showed the local currency settled at N1,823/£1 on Friday, June 5, 2026.
In the first week of June, the Naira modestly recovered, moving away from its high of approximately N1,845/£1 on June 1st.
This slight appreciation occurs amid ongoing liquidity management efforts by Nigeria’s Central Bank (CBN) in the official FX window.
The GBP/NGN’s outlook is subject to a more hawkish approach by the Central Bank of Nigeria (CBN) and supply shocks to the energy sector. The MPR remained at 26.5%. The Nigerian Apex Bank held the CRR at 45% to drain excess liquidity.
Nigeria had ample room to defend the Naira and manage excesses in the FX market with a total of $50 billion in foreign reserves. Crude oil prices are currently standing at about $100 per barrel, boosting Nigeria’s FX reserves.
The most recent fundamental action that was observed was that despite the Cable going up against the greenback last week on the offshore Forex market, the domestic strengthening of the Naira has a depreciating effect on the British Pound in the domestic market as the local market makers view GBP/NGN synthetics crosses in light of the local US dollar supply rather than perfect real-time co-ordination with the spot desk on the other side.
The official rate reflects the CBN’s continued struggle to increase dollar and pound supplies into the official market.
Interventions and reforms aim to channel FX supply into the formal banking system, but demand from manufacturers, importers, and service providers keeps pressure on rates upward.
Although the mid-market official rate stays around N1,810/£1 -N1,815/£1, attention should be given to the parallel market premium. Latest price action showed it hovered above N1,850/£ mark.
Any rise or stagnation in global energy markets prompts the CBN to defend these baseline reserves. Conversely, a decline in global production or demand would quickly affect the NGN outlook.
British pound faces selling pressure against the Greenback
Meanwhile, the Pound faces some selling pressure worldwide following strong US Non-farm Payrolls figures, which boosted the US dollar and limited GBP’s gains across major emerging markets.
The US dollar’s strength has pushed the Pound below 1.34, down approximately 0.37% in recent trading days. The dollar reached a two-month peak after US Non-farm Payrolls’ data significantly exceeded expectations, leading to broad dollar gains and market pricing in potential Fed rate hikes.
Israel and Lebanon announced on Wednesday, in a joint statement with the US, that they agree to a ceasefire following peace talks in Washington.
This development eased fears of escalation and reduced the safe-haven USD demand seen earlier this week, which may have helped support GBP/USD. However, tensions in the Gulf persist, maintaining geopolitical risks and suggesting a limited USD downside and a potential bullish bias for the pair.
US military forces intercepted several Iranian missiles and drones targeting Kuwait and Bahrain. In response, they targeted Qeshm Island in self-defense.
Iran’s military attacked US bases in Bahrain, and diplomatic talks have stalled over Iran’s nuclear program and the Strait of Hormuz. The likelihood of the Fed raising rates in 2026 also supports the US dollar, limiting GBP/USD gains.
Traders may adopt a cautious stance ahead of Friday’s key US employment report (NFP), which could influence future Fed policy. Developments in the Middle East are also expected to increase market volatility and American dollar fluctuations. Fundamentals still favor the dollars bulls, so GBP/USD may continue to face selling pressure at higher levels.
