The Naira remained relatively stable against the United States Dollar on Tuesday, December 23, 2025, as trading commenced across both the official and parallel foreign exchange markets.

The steady performance of the local currency comes amid sustained efforts by the Central Bank of Nigeria to manage liquidity within the Nigerian Foreign Exchange Market.

At the official window, the Naira experienced only mild fluctuations and largely stayed within the trading range recorded in the previous week. Real time market data showed that the exchange rate at the NFEM opened at about 1,455.95 naira to one dollar.

This opening rate followed the closing rate of 1,459.43 naira per dollar recorded on Monday, December 22, 2025.

Market analysts observed that the intraday high during trading reached 1,461.63 naira per dollar, while the lowest rate dipped to 1,452.65 naira per dollar in early morning transactions.

The relative stability recorded in the official market is seen as an indication of a steady supply of foreign exchange to meet legitimate demands from corporate entities and individual users.

In the parallel market, commonly referred to as the black market, the dollar continued to trade at a significant premium compared to the official rate.

As of Tuesday, December 23, 2025, bureau de change operators quoted the dollar at between 1,720 naira and 1,745 naira for selling, while buying rates ranged from about 1,710 naira to 1,730 naira.

The difference between the official and parallel market exchange rates, often described as the “spread”, remains a key concern for economic analysts and market watchers.

While the official exchange rate has recorded incremental stability and occasional improvements, the parallel market continues to respond more sharply to localised demand pressures and increased foreign exchange needs associated with the festive season.

Several factors are currently shaping exchange rate movements as the year approaches its end.

One of the key influences is seasonal demand, as end of year festivities typically increase the need for foreign currency for travel, remittances and imports, placing pressure on available foreign exchange reserves.

Another factor is the intervention of the Central Bank of Nigeria, as sustained periodic foreign exchange auctions have helped to limit sharp depreciation in the official NFEM window.

Global crude oil prices also remain a critical determinant of the Naira’s performance, given Nigeria’s reliance on oil exports as its primary source of foreign exchange earnings.

Economic analysts have suggested that the Naira is likely to continue trading within the current range for the remainder of the week, provided the existing balance between foreign exchange supply and demand is maintained through official market channels.