The Nigerian naira remained largely stable against the United States dollar on Tuesday, December 23, 2025, as trading commenced in both the official and parallel foreign exchange markets.
The calm performance reflects continued efforts by the Central Bank of Nigeria (CBN) to manage liquidity and sustain confidence in the Nigerian Foreign Exchange Market (NFEM).
Official Market Shows Mild Movements
At the official market window, the naira recorded only slight movements, staying within the range seen in recent trading sessions.
Data from the NFEM showed the currency opening at about ₦1,455.95 to the dollar on Tuesday.
This compares with a closing rate of ₦1,459.43 on Monday, December 22.
During early trading, the naira touched an intraday high of ₦1,461.63 and a low of ₦1,452.65.
Analysts say the steady performance suggests a fairly consistent supply of foreign exchange for approved corporate and individual transactions.
Dollar Trades Higher at Parallel Market
In the parallel market, also known as the black market, the dollar continued to sell at a significant premium to the official rate.
On Tuesday, bureau de change operators quoted the dollar at between ₦1,720 and ₦1,745 for sales.
Buying rates ranged from about ₦1,710 to ₦1,730, reflecting strong demand for foreign currency outside official channels.
The wide gap between both markets remains a key concern for traders and economic watchers.
Spread Reflects Market Pressures
While the official rate has shown relative stability, the parallel market remains more sensitive to short-term demand factors.
Traders attribute the pressure to increased cash needs linked to holiday travel, imports, and end-of-year obligations.
Seasonal demand has historically driven higher activity in the informal foreign exchange segment.
Key Drivers of Exchange Rate Movement
Several factors are shaping the naira’s performance as the year approaches its end.
Increased seasonal demand for foreign currency continues to test supply levels.
Regular interventions by the CBN, including foreign exchange auctions, have helped limit sharp movements in the official market.
Global crude oil prices also remain critical, as oil exports are Nigeria’s main source of foreign exchange earnings.
Outlook for the Week
Economic analysts expect the naira to continue trading within its current range in the coming days.
They note that stability will depend largely on sustained foreign exchange supply through official channels and controlled demand in the wider market.
For now, market sentiment suggests cautious optimism as the week progresses.