The exchange rate forecast for GBP to XOF has been significantly impacted by recent economic developments in the UK and changes in the regional monetary landscape of West Africa. As of the latest updates, the GBP has weakened considerably against major currencies, trading near 90-day lows at approximately 742.6 XOF. This figure is 1.4% below its three-month average of 753.1, indicating a challenging environment for the pound.
Analysts attribute the pound's decline to disappointing GDP growth figures, which showed a mere 0.1% increase in the third quarter of 2025. This performance has heightened expectations that the Bank of England (BoE) may cut interest rates in December, which further diminishes the appeal of sterling. The anticipation of the upcoming UK budget on November 26, alongside concerns about potential tax hikes and a looming £20 billion budget shortfall, are creating an atmosphere of uncertainty for investors. Commentators suggest that the pound could face further deterioration as political and fiscal uncertainties weigh on market sentiment.
In contrast, the West African CFA franc (XOF) is undergoing a significant transition as countries in the region are moving towards the adoption of the Eco currency. This shift, including Senegal's plans to transition away from the CFA franc and broader calls for monetary independence in the region, might influence the stability and future valuation of the XOF. However, as the transition process unfolds, financial markets are closely monitoring these developments.
As GBP continues to trade within a narrow range of 742.6 to 759.9, with a volatility of only 2.3%, market participants remain cautious. Economists highlight that the fundamental changes affecting both currencies could lead to further fluctuations in the GBP/XOF pair, especially as global economic conditions evolve. Overall, caution and proactive measures are advisable for individuals and businesses engaging in international transactions involving these currencies.
