Dollar Drops in Value as Naira Soars in Official And Parallel Markets, Reserves Hit $44.67bn
- The Nigerian currency bounced back on Tuesday, December 2, 2025, after a brief depreciation the previous day
- Data from the Nigerian Foreign Exchange Market (NFEM) shows that the naira hit N1,446.39 per dollar
- The development comes as the Central Bank of Nigeria (CBN) intervened with $186.6 million to stabilise the market
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s currency recorded fresh gains on Tuesday, December 2, 2025, following a notable boost in dollar liquidity across the foreign exchange market.
The naira appreciated on both the official and parallel market segments after the Central Bank of Nigeria increased its FX supply by $186.6 billion last week.
Source: Getty Images
This injection helped ease demand pressures that had weighed heavily on the currency in recent weeks.
FX market shows signs of stability
At the Nigerian Foreign Exchange Market, the spot rate strengthened by 0.21 percent to close at ₦1,445.39 per dollar. Activity in the parallel market also reflected renewed confidence, with the naira gaining 1.12 percent to trade at ₦1,458 per dollar.
Market analysts described the recovery as a sign that sentiment is gradually improving, supported by better dollar availability and fewer speculative pressures.
Data from the Central Bank indicated that the naira reached an intraday high of ₦1,450.50, a slight improvement from the previous day’s ₦1,452.
The currency also traded at an intraday low of ₦1,443 compared to ₦1,445 in the earlier session, highlighting a narrowing price movement that suggests less volatility.
According to a report by Market Forces Africa, investment firms reported increased dollar volumes driven by stronger participation from foreign portfolio investors.
The renewed appetite from offshore players has boosted liquidity and helped stabilize the market.
Traders said the outlook for the official market remains positive, with expectations that the CBN will sustain its interventions to keep the naira from drifting beyond acceptable levels.
Many analysts now project that the exchange rate will hover around ₦1,500 per dollar in the near term, supported by consistent policy actions.
Additionally, data shows that dollar inflows into the economy rose by 64.24%, at over $840 million in November 2025.
New data shows FX inflows surged by 64.24% to $841.10 million, improving liquidity and enabling fresh interventions from the Central Bank of Nigeria (CBN).
The CBN accounted for the largest share of inflows at 33.42% ($281.10 million), followed by non-bank corporates (23.07%), Foreign Portfolio Investors (19.38%), individuals (5.45%), and others (2.01%).
Foreign reserves rise on improved inflows
Alongside the currency’s appreciation, Nigeria’s external reserves climbed to $44.668 billion as of late November, according to the latest update from the CBN.
The reserves build-up comes despite fluctuations in global crude oil prices, reflecting improved FX inflows and stronger market management by the monetary authority.
Earlier in November, CBN Governor Yemi Cardoso disclosed that the country’s external reserves had exceeded $46.7 billion.
He noted that this level of reserves represents about 11 months of import cover, based on the latest trade data. Such a buffer, he said, strengthens Nigeria’s capacity to defend the naira and provide confidence to investors.
Market outlook favors continued naira stability
With dollar supply improving and reserves rising, the broader sentiment around the naira has shifted toward optimism.
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Massive boost for naira as dollar inflows into Nigerian FX market rises by over 64 per cent
Analysts believe that sustained policy discipline, improved liquidity, and deeper investor participation will remain crucial to keeping the exchange rate stable.
Source: Getty Images
For now, the combination of stronger supply, easing demand pressures, and a steady rise in external reserves suggests that Nigeria’s FX market is gradually regaining balance and could maintain this trajectory if current conditions persist.
Naira begins December strongly against USD
Legit.ng earlier reported that the naira began December on a positive note, extending the upward momentum built in recent weeks at the official foreign exchange window.
The currency closed the week at N1,446.74 per dollar, appreciating by 0.69% from the previous week’s close of N1,456.72 after a period of sharp volatility driven by mixed market sentiments.
This came after a period of sharp volatility triggered by fluctuating market sentiments and pressures at both ends of the FX market.
Source: Legit.ng
