The GBP to XOF exchange rate is currently range-bound, showing stability in recent trading. Key drivers influencing this situation include a notable interest rate differential; the Bank of England is anticipated to cut rates, while the BCEAO has achieved a decrease in the region’s budget deficit, potentially supporting the XOF. Additionally, recent fiscal concerns in the UK, tied to income tax policy reversals, could exert further downward pressure on the pound.
Expect the GBP to XOF exchange rate to fluctuate within a stable range in the near term. Recent data shows the exchange rate at 756.1, which is only slightly above its three-month average.
Upside risks could stem from improved trade relations following Nigeria's approval of the CFA franc for export earnings, enhancing demand for the currency. Conversely, uncertainty surrounding the potential establishment of a new currency by the Alliance of Sahel States presents a notable downside risk, as it may diminish the XOF's stability and user base.