It has been hard for Naira to regain its strength against most of the world’s major currencies since the time it declined in value last year. The pounds is one of the currencies, it is exchanged at N460 per £1. The Federal government of Nigeria had made effort to increase the strength of Naira. This effort is yielding positive result but the Naira is not where it was before the current administration. The trend is on the rise despite putting an end to official pegging of the exchange rate with the hope of strengthening Nigerian currencies.
You should be aware that the Pound Sterling is the legal tender in United Kingdom. That is, the official currency of the UK. No doubt, it is one of the strongest currencies in the universe. The Nigerian currency has not been performing favorably with the currencies like pounds, dollars, Euro and this is affecting a good number of Nigerian adversely.
This article presents you the daily exchange rate of pounds to Naira. Therefore, if transact business in countries that makes use of British Pounds, you should keep yourself updated on the selling and buying rate of Naira to pounds.
Buying => 1 Pound to Naira = N460
Selling => 1 Pound to Naira =N450
What are the causes of the continuous fall of Naira against these major currencies of the world? The rise of importation is one of the factors affecting Nigerian Naira. It is a sad reality that Nigeria imports more than it exports. This act does not favor the Nigerian currency in anyway. It is even sad to discover that most of Nigeria-made products were not actually made in the country. Most of them were just assembled in Nigeria. Many products that should not be imported into the country are being shipped in everyday. The country imports product like pampas, frozen turkey and many others. The rise in our importation rate is one of the factors the affects our currency.
The federal government is also responsible for this situation. The federal government, instead of looking for measures to strengthen the Naira, instead devaluates it. A cursory look at the way the Naira value has been falling and leaving it to the market forces suggests that the federal government is not helping the situation.
Another reason why our currency keeps falling is the high demand for dollars. It has been discovered that some Nigerians prefers transacting in dollars which is not good enough for our currency. Some people even demand to be paid in dollars. This practice must be stopped in order to strengthen our currency.
The fall in Global oil price is another culprit. Nigeria revenues hinges majorly on the oil exports. The over dependence on oil has negatively affected the strength of the Nigerian currency. The drop in oil price has led to reduction in revenue which consequently affects the Naira. The only way around this situation is to diversify the economy.
Looting of public funds also affects our currency adversely. If looted funds are invested in the country, it would have a positive effect on the economy.