Naira steadies at N1,808/£ officially but parallel market trades at N1,870-1,900

The NFEM official rate for the British pound stands at N1,808.3/£, retreating from an early November peak of N1,814.44/£ on November 4. GBP/NGN opened November around 1,802.21, rallied to that monthly high, then settled into a 1,783-1,788 range. However, the parallel market tells a different story—trading at N1,870-N1,900/£ depending on location and transaction size, a premium of roughly 3-5% over the official window.

CBN reserves sit at $55.3 billion, comfortably above the $51.04 billion full-year target. The MPC cut rates 350 basis points to 23% in September as inflation eased to 15.4%, and is widely expected to hold at its November 24 meeting. Official rates should stay range-bound between 1,775-1,815 if NFEM liquidity holds, but festive December flows will keep parallel market premiums elevated.

Driving the pressure: off-season import demand, holiday travel forex needs, portfolio outflows, and a stronger dollar after hot US inflation data. Meanwhile, the pound is gaining globally—GBP/USD rose to 1.3260 after UK Q3 GDP grew 0.7% (beating a revised -1% Q2) and industrial production surged 3.1% year-on-year, the highest on record.

Key dates: CBN MPC decision November 24 (watch for pre-2027 election liquidity signals), plus upcoming UK inflation and labor data that could push the Bank of England toward another rate hike before year-end. US Fed speakers this week may signal a December hike, keeping dollar strength intact.

If you need pounds for travel or imports, the parallel market premium is your real cost—will you source now or bet on December easing?

SOURCE: https://nairametrics.com/2026/11/12/naira-holds-firm-against-british-pound-at-n1808/