Aeesha's Blog

Tag: Naira To Dollar

  • Naira Maintains Stability Across Official, Parallel Markets

    The Naira on Monday opened the week with relative stability against the United States Dollar across the official Nigerian Foreign Exchange Market (NFEM) and the parallel market.
    Data monitored on Dec. 8 showed that the indicative exchange rate in the official window stood at N1,449.84 per dollar, reflecting similar levels recorded at the end of the previous week.
    Market operators attributed the stability to the Central Bank of Nigeria’s recent liquidity and monetary policy interventions, which they said had helped moderate pressure on the official market.
    Analysts noted that the NFEM continues to operate under thin liquidity, a situation that typically feeds volatility, but added that the Naira had shown resilience despite persistent foreign exchange demand.
    In the parallel market, the Naira traded at between N1,480 and N1,490 per dollar in major commercial cities, including Lagos and Abuja. Dealers said the rate varied across locations but maintained a premium over the official market.
    The sustained gap between the official and parallel market rates, according to financial analysts, continues to pose concerns for businesses and investors. They explained that the divergence encourages speculation and discourages formal foreign exchange inflows.
    They said market participants were monitoring possible policy pronouncements and changes in foreign currency supply, especially as the year-end approaches.

  • Dollar To Naira Exchange Rate Holds Firm As Markets Stabilise

    Dollar To Naira Exchange Rate Holds Firm As Markets Stabilise

    The Nigerian Naira on Wednesday maintained its recent stability against the U.S. Dollar, with both the official and parallel markets showing a rare level of convergence driven by ongoing reforms in the foreign exchange ecosystem.

    Data obtained from the FMDQ Securities Exchange shows that the Naira opened at ₦1,448.43 per dollar at the Nigerian Foreign Exchange Market (NFEM). The currency has traded within the same band for most of the week, following an earlier close of ₦1,450.01, a performance analysts attribute to sustained liquidity interventions by the Central Bank of Nigeria (CBN).

    In the parallel market, rates remained closely aligned with official figures. Traders in Lagos and Abuja sold the dollar between ₦1,455 and ₦1,460, keeping the spread below ₦15. The near-uniform pricing follows the strengthening of the CBN’s “willing buyer, willing seller” framework, which has helped curb arbitrage and stabilise market sentiment.

    A currency dealer at Wuse Zone 4, Abuja, told our correspondent that demand had “normalised significantly,” with fewer spikes from speculative activities.

    Economic Indicators Strengthening

    The Naira’s steadiness is supported by what market watchers describe as improving macroeconomic fundamentals. Nigeria’s external reserves rose to $44.56 billion in late November — the highest in more than five years — giving the apex bank more room to meet demand and settle outstanding commitments.

    The National Bureau of Statistics (NBS) also reported a drop in headline inflation to 16.05 per cent in October 2025, its lowest level in over three years. Analysts link the moderation to better food supply from the harvest season and a more predictable exchange rate environment. Improved real returns on Naira assets have also attracted renewed foreign portfolio inflows.

    CBN Maintains Stability Measures

    The CBN Monetary Policy Committee (MPC) last week retained the benchmark interest rate at 27.00 per cent. Governor Olayemi Cardoso reaffirmed the bank’s intention to prioritise price stability, stressing that the prevailing exchange rate reflects “true market value.” He noted that the bank would intervene only to address excessive volatility, not to peg the currency.

    Positive Outlook Into Festive Season

    Analysts at several investment institutions project that the Naira will remain within the ₦1,445 to ₦1,465 range for the rest of the festive period, citing steady oil output and improving investor confidence. Eurobond yields have also eased, helping reinforce favourable capital market conditions.

    Exchange Rate Summary (Dec. 3, 2025)

    NFEM Official Open: ₦1,448.43 / $1

    Projected NFEM Close: ₦1,450.00 / $1

    Parallel Market Buy: ₦1,452 / $1

    Parallel Market Sell: ₦1,460 / $1

    Black Market GBP: ₦1,925 / £1

    Black Market Euro: ₦1,680 / €1

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