The Nigerian foreign exchange market began the week on a mixed note, with the Naira showing relative stability at the official window while recording a wider gap at the parallel market on Tuesday, December 16, 2025.
At the official Nigerian Foreign Exchange Market (NFEM), the Naira traded around ₦1,452.27 to the US Dollar during early trading. This reflects the Central Bank’s continued effort to keep the official rate within a narrow and controlled range. Market data showed that trades were conducted between approximately ₦1,451.19 and ₦1,452.57 in the opening hours, suggesting limited volatility compared to previous weeks.
In contrast, the parallel market recorded higher exchange rates. Reports from Bureau De Change operators and street traders indicated that the Dollar exchanged for between ₦1,465 and ₦1,475. This difference highlights the ongoing pressure in the informal market, where demand for foreign currency by individuals and small businesses often exceeds available supply.
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Analysts say the relative calm in the official market is supported by improved liquidity from the Central Bank and a slowdown in corporate demand as the year draws to a close. However, the persistent premium in the parallel market points to deeper structural issues and speculative activities that continue to weigh on the Naira.
Market participants remain cautious, closely watching future policy moves by monetary authorities, especially measures aimed at reducing the gap between exchange rates and addressing inflationary pressures.
