The Nigerian naira recorded a broad-based decline against the British pound on Saturday, 17 January, underscoring renewed pressure across both regulated and unregulated foreign exchange segments.
Figures published by the NGNToday platform indicate that the official exchange rate for the pound sterling fell to N1,893, down from N1,913 on Friday, 16 January. The movement reflects a depreciation of the naira at the formal window, interrupting the relative stability seen earlier in the week.
The trend was mirrored more sharply in the black market, where the pound exchanged at N1,950, weakening further from N1,995 recorded the previous day.
This shift highlights sustained demand for the British currency in the parallel market, particularly among importers, travellers, and students with overseas financial obligations.
Market analysis suggests that the simultaneous depreciation across both segments points to broader structural demand pressures rather than isolated market distortions.
Unlike instances where official rates are shielded by policy interventions, Saturday’s data show that pound demand may have outpaced available supply even within the formal system.
Currency watchers note that the pound’s strength is often amplified by limited liquidity and the relatively lower volume of sterling transactions compared to the US dollar. As a result, modest shifts in demand can translate into pronounced movements in the exchange rate, especially in the parallel market.
The narrowing but still significant gap between the official and black market rates also reflects persistent confidence challenges. While the official window continues to operate under Central Bank guidance, many market participants still rely on informal channels to meet immediate foreign exchange needs.
Overall, Saturday’s performance signals a cautious outlook for the naira against the pound in the near term. Without improved foreign exchange inflows or expanded access to non-dollar currencies, analysts expect pressure on the local currency to remain evident across both markets.
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