The naira remains steady at N2,200 to the British pound in Nigeria’s parallel market, even as the pound sterling undergoes a correction in global forex markets due to mounting concerns over the UK’s fiscal outlook.
Despite the British currency’s decline, driven by investor jitters over Britain’s finances, the naira showed little movement, reflecting ongoing consolidation in the local forex space. The UK hosts Nigeria’s largest diaspora outside Africa, making the pound’s performance particularly significant for remittances and trade.
Meanwhile, the UK government reaffirmed its commitment to strengthening economic ties with Nigeria. Under the Developing Countries Trading Scheme (DCTS), 99% of Nigerian exports remain eligible for duty-free access to the UK market, aiming to deepen bilateral trade and support Nigeria’s economic growth.
The UK High Commissioner to Nigeria, Dr. Richard Montgomery, praised Nigeria’s economic reforms, saying they are crucial for unlocking sustainable growth and fostering a business-friendly environment. Montgomery also cited recent improvements in Nigeria’s forex reserves and revenue collection as positive signs for investors.
“Both nations are poised for stronger economic cooperation, with trade already valued at £7.2 billion. Nigeria’s reforms align with the UK’s vision for global partnerships based on resilience and shared prosperity,” Montgomery said.
On the UK side, the pound’s recent slide followed renewed investor anxiety over Britain’s fiscal discipline. This was fueled by Finance Minister Rachel Reeves’ emotional appearance in Parliament after the government watered down its welfare reform plans, leading to significant budgetary setbacks. The government narrowly won a vote on the revised legislation, but 49 lawmakers rebelled, undermining the effort to save £5 billion.
Prime Minister Keir Starmer’s office later reaffirmed support for Reeves amid speculation about her future role, seeking to calm markets as the pound fell nearly 1% and government bond yields spiked.
Elsewhere in the currency markets, the dollar fluctuated following news of a trade deal between the U.S. and Vietnam ahead of the July 9 tariff deadline. The euro held steady at $1.1806, the pound edged up slightly to $1.3647 in Asian trading, and the yen strengthened modestly to 143.56 per dollar. The dollar index hovered at 96.7, near multi-year lows, with markets awaiting U.S. jobs data for June.
