Pound to Naira Exchange Rate Stood at N550 on Saturday

Pound to Naira exchange rate stood at N550 on the black market on Saturday, according to the Investors King’s daily naira exchange rate.

The Naira slid against the pound to a record low of N550 due to the drop in liquidity supply by the Central Bank of Nigeria to the foreign exchange market.

The central bank had suspended sales of forex to the bureau de change operators during the COVID-19 lockdown to ensure BDCs abide by the lockdown restrictions.

However, while the apex bank had promised to resume sales of forex soon, the weak foreign reserves, low capital importation and weak oil prices remained a challenge.

On February 26, 2020 pound to naira was exchanged at N471 before plunging to N535 on June 1st, 2020 and N550 on Saturday, today.

That was because businesses are reopening but forex scarcity remains despite efforts by the central bank to deepen its availability across key forex markets.

Godwin Emefiele, the governor of the central bank, had blamed the wide exchange rates on speculators and currency hoarders looking to profit from market irregularity.

He said “I know some of you are involved, stop now. By going to the parallel market, you are helping to overheat that market. Not only that, you will lose money because you would have bought it at a price that is not realistic.

“I can tell you that you are going to lose money. But we have seen your account already. We are appealing to you, please stop and let’s do what is right, what is legal, so that Nigeria can continue to be a good place for you and to live in.”

Speaking further, he said, “We are taking note of some of you and I can tell you, go ahead and do your business, nothing will stop your forward, your forward will be at a committed price, we are going to provide more liquidity in the market so that people can stop going to the parallel market. Don’t go there because it is not good for you. But be patient, it’s going to be orderly’’.

Pound to naira official exchange rate remains N456.66 stipulated by the central bank of Nigeria.