At the time of writing this article, Pound Sterling (GBP) is around N500. It even previously went as high as N504, and it could go towards that price level (even exceeding it).

Euro (EUR) is also N440, after rising from a low of N422 early this year.

On the other hand, US dollar (USD) has only consolidated, hovering around the price levels of N360, N361 and N362.

Why are euro and pound going upwards but not dollar?

The reason is simple: The CBN (Central Bank of Nigeria) is pumping dollars into the economy. Billions of dollars have been pumped in recent times and that is what has kept price of dollar from going up. When supply is high, price should not be expected to rise.

The CBN has proven that they have deep pockets – they are intent on continuing to pump dollars into the markets. This would help those who need it to get it at cheaper prices.

However, CBN doesn’t pump GBP or EUR into the economy, hence the rise in prices of Euro and Pound.

Once CBN stops pumping dollars into the economy, price of dollar would rise steeply.

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