It has been pretty difficult for the Naira to maintain its strong grip and maintain its pride of place, ever since the free fall during the recession last year. The Great British pounds sterling is one of such currencies our Naira has been finding it difficult to exchange well for. This post is about Pounds to Naira Exchange Rate.
We all know the dollar to naira exchange rate has been on the high side for some time now, in favor of the American strong currency. But yes, the same can be said of the pounds to naira exchange rate too. This is sad for the Nigerian economy though.
We would recall the Federal Government put measures in place to strengthen the value of Naira, yet to no avail. The government, through the Central Bank of Nigeria, went as far as pegging the Pounds to Naira exchange rate today to a fixed value, all in effort to enhance the Naira, yet, all these measures prove abortive. The value of Naira is still on a downward trend.
Pound to Naira CBN Exchange Rate Today
The POUNDS TO Naira CBN Exchange Rate Today is as follows:
Buy at £1=N397
Sell at £1= N398
POUNDS TO Naira Exchange Rate Today Black Market
The POUNDS TO Naira Exchange Rate Today Black Market is as follows:
Buy at £1=N474
Sell at £1= N480
Facts about The British Pounds
There are many countries who use Pounds as a unit of their currencies, apart from Britain. Such countries include Lebanon, Syria, Egypt, Sudan. However, all of these pounds do not measure one bit to the strong, priceless British Pounds sterling.
Here are some laudable facts you should know about the Pounds.
The pound sterling currency comes in both coins and notes. The regular currencies in circulation include coins include 10P, 5P, 2P & 1P. Notes in circulation include £5, £10 and £20. The bank of England withdrew the £1 notes from circulation in the year 1980.
- The 25P was also stopped in the year 1981 to commemorate the wedding of Prince Charles and Lady Diana
- Shopkeepers are allowed by law to accept of payment of items. For example, the law allows shopkeepers to refuse to accept more than 20P if offered in 1P and 2P Coins. They could also reject anything more than £5 if given in 5P & 10P coins, or greater than £10 if issues in 20P & 50P coins.
- The Royal mints of England were solely in charge of producing coins which are usually marked with the date of production. However, there was an error in 2009 in which more than 200,000 20P coins were allowed into circulation without dates. Many of these coins found their way to auction sites online and were sold for several times their worth. It was indeed an expensive mistake. LOLs!
- During the second world war, the Nazi Germans had come up with an idea to the destabilize the economy of the Great Britain. So, they mass produced lots of fake pound sterling notes in order to devalue the British currency. As at 1945, over 12% of the pounds in circulation were actually counterfeit currencies. In order to strengthen the value of their currency, the British government at the time responded by withdrawing notes of higher denomination out of circulation and introduced additional metal threads to enhance the security features on their currency. You can still find these metal threads on the pounds notes till date.
- Several banks in the UK are allowed by law to issue bank notes for use in the country. For example, the Bank of England issues bank notes for use in England and the entire Wales. Bank notes in use in the Clydedale and Scotland were issued by the Bank of Scotland. On the other hand, the Bank of Ireland issues bank notes in use in the Northern Ireland.
- It is interesting to note that bank notes issued by the Northern and Scottish Irish are not acceptable by law as legal tenders and by implication, cannot be used as a means of payment or settlement of debt. Those notes only exist for historical value
Why is Pounds to Naira Rate So High?
The pounds to naira rate ordinarily would not have been so high but because of our inherent issues bedeviling Nigeria. Let us discuss some of these reasons one by one.
High Mono-economic Reliance on Oil
No doubt, Nigeria is a mono economic nation that heavily relies on oil to survive. In recent times, we have had the Federal Government fashioning other sources of revenues in order to wean Nigeria off her heavy dependence on oil revenue. However, the pendulum still swings in favour of ever reliance on oil proceeds to survive. At the moment, Nigeria gets more than 88% of her wealth from the daily proceeds of oil.
The remaining 12% revenue is obtained from Internally Generated Revenue, IGR, Agriculture, solid minerals, and other sources.
At the moment, oil manages to sell at about $80 per barrel, which is like a departure from the golden years when it was sold for as high as $120. Therefore, any negative fluctuation in the prices of crude oil is bound to affect the country. We really have no major export to make us financially empowered as a nation. Rather, we are a typical consumer nation that imports more than 96% of its needs from other countries.
The foreign exchange we receive from oil proceeds is used to pay for our basic importation needs, leaving us with little or no savings to boost our foreign reserves. At the end of the day, our Naira is left to the economic dictates of the heavily industrialized economies.
Endemic Corruption Affects Pounds to Naira Exchange Rate
Except we want to mince words and shy away from the fantastic level of corruption that has been stunting our growth, the growth of the nation is staggering. The level of corruption is so bad that even a child born today will want to be President in order to have his own share of the federal cake. Very bad!
We all know there have been claims of recovered billions from loots and serial rapes on the economy, perpetrated by those we look up to as custodian of our treasury. Some looters even went as far as converting their loots into foreign currencies such as dollars and pounds. These loots ultimately go a long way to cripple the economy and weaken our naira.
If the pounds to Naira exchange rates today do not favour you, please heap some blame on the level of corruption in the country. It has a weakening effect on the naira.
Bad Government Policies & Infrastructural Deficits
Of course, government policies have a huge impact on the economy, and ultimately the pounds to naira exchange rates. A few months ago, the government technically devalued the Naira by pegging it at a fixed rate, in a bid to “protect” the country’s currency from free fall. This may have been done in good faith by the government but this could affect investor’s confidence.
No investor will invest millions of dollars in an economy whose currency has been largely devalued. Besides, there is still the myriads of problems to battle with such as that of hydra-headed epileptic power supply, insecurity especially in some parts of the country, poor road network and so on, if you want to invest in the country.
Solutions to Improve the Pounds to Naira Exchange Rate
- Let the Love of Country Reign Supreme
It is about time we change our attitude and love our dear country. It is only love of country that can breed the attitudinal change that will drive this country forward. From followers to leaders, we all need it. With patriotism, Nigerians will elect determined leaders who will wake the sleeping giant up from its terrible slumber. Follower’s should not trade their vote for stomach infrastructure or a plate of rice.
- Industrialize & Diversify our Economy
Nigeria needs more industries to grow the economy. We must create a paradigm shift from being consumers to being the actual producers of wealth. Our leaders should revive the ailing industries and generate jobs that will keep our resourceful youths busy.
Provide enabling infrastructures such as power, good roads, etc that will drive growh and development. Create wealth for the country by investing long-term in Agriculture, health and education.
Nigeria should work hard to feed, clothe, shelter & educate herself. Resist the urge to borrow on recurrent expenditure but invest more on capital expenditures. No more budget padding. Only then shall we move to being a strong economy.
- Strengthen the Judiciary
Crime and corruption occur even in the best of developed countries. However, what differentiates a developed country from a developing one is the strong judicial system that is above personalities and delivers justice to the people in a fair manner. Our judiciary must be so strengthened to prosecute criminal cases speedily without fear or favour.
Let all Nigerians be equal before the law. Justice as the last hope of the common man must not be delayed. Only then can we be able to boldly curb corruption and other social vices and ultimately move the country forward.
It has been pretty difficult for the Naira to maintain its strong grip and maintain its pride of place, ever since the free fall during the recession last year. The Great British pounds sterling is one of such currencies our Naira has been finding it difficult to exchange well for.
However, we can gradually even out the current lopsided exchange rate that is in favour of the British pounds and ultimately improve our economy.