The Nigerian Naira maintained a steady yet cautious position against the United States Dollar today, December 18, 2025, as activity in both the official and parallel markets reflected the ongoing year-end demand for foreign exchange.
Official Market Performance (NFEM)
In the Nigerian Foreign Exchange Market (NFEM), the Naira opened the trading day at approximately 1,453.25 per dollar. This follows a closing rate of 1,458.02 recorded on Wednesday, December 17. Early morning trades showed the currency oscillating between a high of 1,460.75 and a low of 1,453.07, indicating slight volatility as corporate entities and importers seek to close their annual balance sheets.
Market analysts note that the Central Bank of Nigeria (CBN) has remained active in its intervention windows to ensure liquidity, which has helped prevent a significant slide in the official rate despite the traditional festive season pressure on the currency.
Parallel Market (Black Market) Trends
The parallel market continues to command a premium, with Bureau De Change (BDC) operators in major hubs like Lagos, Abuja, and Kano reporting rates between 1,720 and 1,735 per dollar. The widening gap between the NFEM and the black market remains a point of concern for policymakers, as retail demand for “travel allowance” and holiday-related imports peaks.
Key Factors Influencing the Rate
Several factors are currently driving the exchange rate dynamics:
Year-End Import Demand: Increased orders for consumer goods ahead of the holiday festivities are keeping the demand for dollars elevated.
Liquidity Injections: Recent efforts by the CBN to boost FX supply through authorized dealers have provided a necessary cushion for the Naira.
Global Oil Prices: Relatively stable global crude oil prices have supported Nigeria’s foreign reserves, giving the apex bank more room for market intervention.
As the trading week nears its end, experts anticipate the Naira will remain within the 1,450 to 1,465 range on the official window, while the parallel market may see further slight depreciation if retail demand continues to outpace available supply.
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