CBN Updates Naira Exchange Rate Against British Pound, Euro
- The naira has appreciated against the British pound and the euro in Nigeria’s foreign exchange market
- Traders said the gains are due to better liquidity and recent Central Bank of Nigeria reforms
- A breakdown of the latest exchange rates of the dollar and other currencies has been released
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Nigerian naira showed strength against the British pound sterling and the euro on Wednesday, February 4, supported by rising forex supply that outpaced demand across key market segments.
According to data from the Central Bank of Nigeria, the naira against the pound sterling appreciated on Wednesday by N14.16 to N1,863.43/£1 from the previous day’s N1,877.59/£1.
It also gained N13.73 against the euro, closing at N1,606.03/€1 compared with N1,619.76/€1 recorded the previous day.
Source: Getty Images
At the GTBank FX desk, it strengthened by N3 to N1,383/$1, compared with Tuesday’s rate of N1,386/$1.
In the parallel market, the naira gained N5 against the US dollar to trade at N1,450/$1, up from N1,455/$1 recorded the previous day.
Abdullahi, a Bureau de Change (BDC) operator, told Legit.ng:
“on Thursday, the dollar buying rate is N1,445, while the selling rate is N1,460. The British pound sterling is buying at N1,970 and selling at N2,005. The euro is bought at N1,680 and sold at N1,720.”
Why is naira appreciating?
Naira gains have been driven by sustained foreign exchange inflows from investors seeking opportunities in Nigeria’s emerging market, which have also bolstered the country’s external reserves.
As of February 4, 2026, FX reserves stood at $46.59 billion, giving the CBN the capacity to support the local currency.
The naira’s performance comes at a period of relative stability in Nigeria’s foreign exchange markets, even without direct intervention from the apex bank.
Source: Getty Images
Other currency rates
The CBN also provided updated exchange rates for other major currencies:
- UAE Dirham: N369.77
- CFA: N2.51
- Yuan/Renminbi: N197.84
- Danish Krone: N216.84
- Euro: N1,619.76
- Yen: N8.81
- Riyal: N366.09
- South African Rand: N86.02
- Swiss Franc: N1,765.81
- Pounds Sterling: N1,877.60
- US Dollar: N1,372.91
CardinalStone predicts N1,350 per dollar
Earlier, Legit.ng reported that Nigeria’s naira is expected to see a significant recovery in 2026, potentially trading between N1,350 and N1,450 per dollar, supported by ongoing foreign exchange reforms, improved market liquidity, and moderating inflation, according to CardinalStone Partners.
The forecast appears in the firm’s 2026 economic outlook report, “Indicators Align for Sustained Macro Gains”, published on January 6, 2026. While the report expresses cautious optimism, it also highlights potential risks from declining global oil prices and increasing domestic security challenges.
Declining inflation and lower fuel costs are forecast, offering relief to households and stabilising consumer prices.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
