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Pound Crushes Naira! Exchange Rate Skyrockets to ₦2,200 in Market Shocker
Recent price trends show that the Nigerian naira has been trading within a tight range in the parallel market, hovering between ₦2,150 and ₦2,250 to the British pound this month, driven by heightened demand for the pound in Nigeria’s commercial hub.....KINDLY READ THE FULL STORY HERE▶
Naira Outlook Tied to CBN Reforms, Foreign Investment as New Instruments Boost Sentiment
Recent monetary indicators suggest that the stability of the Nigerian naira in 2025 will largely hinge on the Central Bank of Nigeria’s (CBN) reform agenda and the participation of foreign investors.
The naira gained some positive traction following the introduction of naira-denominated global depositary notes by BNY Mellon and Standard Bank, backed by Nigeria’s sovereign debt. These instruments aim to enhance foreign investors’ access to the country’s lucrative debt market.
Settlement of the notes through major international clearing systems — Euroclear and Clearstream — is expected to attract a broader spectrum of institutional investors globally. Analysts view this as a major breakthrough in integrating Nigeria’s debt instruments with international financial markets.
British Pound Holds Ground Despite Weak UK Retail Sales Data
The British pound remained resilient against major currencies during the week, even as disappointing UK retail sales data triggered concerns about consumer demand. The pound closed at 1.345 against the US dollar, but faces resistance at the psychological 1.35 mark — casting uncertainty on its short-term trajectory.
UK retail sales plunged by 2.7% month-on-month in May, the steepest drop since December 2023. This followed a revised 1.3% gain in April and came in significantly below the market forecast of a 0.5% decline. The fall was largely attributed to a sharp drop in food store sales.
The poor data is expected to intensify pressure on the Bank of England (BoE) to begin cutting rates in the summer, despite keeping interest rates steady in its latest meeting. Three members of the Monetary Policy Committee (MPC) voted in favour of a 25-basis-point cut, citing softened labour market conditions, tepid consumer demand, and sustainable wage levels.
The BoE reiterated in its policy statement that any easing of monetary policy would be done gradually and with caution.
While UK consumer inflation in May remained at 3%, matching expectations and slightly down from April’s figure, it remains well above the BoE’s 2% target. Core inflation slowed to 3.5% from 3.8% in April.
Adding to market sentiment, UK Finance Minister Rachel Reeves acknowledged progress in stabilising public finances but warned that significant economic challenges persist.
Meanwhile, UBS predicts a strengthening euro against the pound, potentially driving the EUR/GBP exchange rate toward the 0.86 mark as inflationary pressures and economic uncertainty continue to weigh on UK consumers.
Dollar Weakness Boosts Sterling
The pound also benefited from a weakening US dollar, as investor jitters over erratic US policy directions under the current administration led to a sharp greenback sell-off. This shift in sentiment has further bolstered the pound’s relative strength on the global stage.
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Kwara PDP Protests As Govt Moves To Reopen Robbery Case Against Saraki, Others.
The Peoples Democratic Party (PDP) in Kwara State has strongly opposed reported moves by the state government to revisit the alleged Offa robbery case involving former Governor Abubakar Bukola Saraki and others.....KINDLY READ THE FULL STORY HERE▶
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2027: Oyo APC Senator Alli Declares Governorship Ambition.
Senator representing Oyo South, Sharafadeen Alli, has declared his intention to contest the Oyo State governorship election ahead of the 2027 general elections.....KINDLY READ THE FULL STORY HERE▶
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Showunmi Declares For Ogun 2027 Governorship, Seeks IPAC Support.
A PDP chieftain and convener of The Alternative, Otunba Segun Showunmi, has declared his intention to contest the 2027 Ogun State governorship election.....KINDLY READ THE FULL STORY HERE▶
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