Naira gains against British pound as CBN tightens liquidity, parallel market premium narrows
The Nigerian naira appreciated against the British pound on both the official Nigerian Foreign Exchange Market (NFEM) and the parallel market this morning (July 2, 2026). On the NFEM, the pound traded at roughly N1,825/£1, up from N1,831/£1 at Wednesday’s close, while the parallel market quoted around N1,905/£1. The move follows sustained CBN liquidity tightening—maintaining a monetary policy rate of 26.5% and a cash reserve ratio of 45%—which has withdrawn excess naira from banks and reduced ammunition for parallel‑market speculators. As a result, the premium between official and parallel rates has narrowed, with NFEM rates hovering near N1,370–1,380 per US dollar and the parallel‑market gap shrinking. Analysts say the naira’s near‑term direction will depend on foreign‑exchange inflows from crude oil receipts, diaspora remittances, and portfolio investments, as well as the scale of CBN market interventions. For importers, travelers, and those paying foreign‑currency obligations, a stronger naira lowers immediate costs, but the trend’s durability hinges on continued dollar inflows and central‑bank action. Will you adjust your foreign‑currency plans—such as for school fees, imports, or travel—based on the naira’s recent strength, or wait to see if the gains hold amid evolving oil flows and policy moves?