Traders Quote Dollar at N1,454 in Official Forex Market as External Reserves Rise
- The Nigerian currency rebounded in the foreign exchange market on Friday, December 13, 2025
- According to market data, the naira traded at N1,454 per dollar as the Central Bank of Nigeria (CBN) stepped in with interventions
- Also, Nigeria’s foreign reserves experienced a massive boost with over $300 million accretion to exceed $45 billion
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s currency posted a modest rebound at the official foreign exchange market on Friday, with the dollar quoted at N1,454.51 per U.S. dollar for payment transactions.
The gain came after the naira had traded negatively for eight consecutive sessions, weighed down by persistent demand for foreign currency.
Source: Getty Images
CBN intervention lifts supply at the official window
Market participants attributed the late recovery largely to renewed foreign exchange intervention by the Central Bank of Nigeria, which sold dollars to banks and other authorised dealers at the official window.
Read also
Naira’s depreciation: Dollar inflows to forex market rise marginally amid CBN interventions
Traders said the apex bank’s action helped ease immediate pressure and stabilise pricing, even as underlying demand remained elevated.
According to FX dealers, the naira’s rebound did not occur until the CBN strengthened supply toward the end of trading.
Eligible participants seeking funds for imports, school fees, travel allowances, and other legitimate obligations had kept demand high throughout the week.
At the Nigerian Foreign Exchange Market window, spot trades were recorded within a relatively tight band.
The intraday high reached N1,458.50 per dollar, while the lowest rate settled around N1,453, reflecting improved liquidity conditions following the intervention.
Despite the temporary relief, traders noted that demand pressures still outweighed total supply, even with inflows from offshore investors positioning for the Open Market Operations bills auction.
Parallel market also shows improvement
Sentiment improved beyond the official segment, with the naira also gaining ground in the parallel market.
The local currency exchanged hands at about N1,475 per dollar among willing buyers and sellers, narrowing the gap between the official and informal markets.
Analysts said the convergence signals easing speculative pressure and growing confidence that the authorities are willing to defend the currency when volatility intensifies.
External Reserves Extend Strong Rally
Supporting the improving sentiment, Nigeria’s external reserves continued their steady climb.
Gross FX reserves rose for the twenty-fifth consecutive week, increasing by $396.84 million week on week to $45.44 billion.
The sustained build-up in reserves has been linked to higher crude oil receipts, improved remittances, and tighter management of FX outflows.
Analysts say the stronger reserve position gives the CBN more room to intervene strategically in the market when needed.
"The naira is actually in a good position right now due to the massive boost provided by the external reserves," Janet Ogochukwu, senior banker and economist, told Legit.ng.
According to her, the current yuletide will also add to the naira's appreciation as dollar inflows increase due to Detty December.
"We know that the naira usually experienced rebounds this season due to what is now known as 'I Just Got Backs (IJGBs), who contribute to inflows," she said.
Previous predictions had put the exchange rate at N1,400 towards the end of the year, which will lead to the local currency finishing 2025 strongly.
Forward market signals cautious outlook
In the forwards market, the naira weakened across most short- and medium-term contracts, according to Cordros Capital Limited.
The one-month forward rate depreciated by 0.4% to N1,485.97 per dollar, while the three-month contract fell by 0.5% to N1,536.28. The six-month contract declined by 0.9% to N1,599.70.
However, the one-year forward contract bucked the trend, appreciating by 0.3% to N1,726.89 per dollar, suggesting expectations of relative stability over the longer term.
Source: Getty Images
Market outlook remains guardedly positive
Analysts maintain that the naira is likely to remain broadly stable in the near to medium term, supported by strong net FX liquidity and rising reserves.
While demand pressures persist, sustained CBN engagement and improving external buffers are helping to anchor market expectations and calm volatility across currency segments.
CBN introduces cash limit for BTA, PTA for travellers
Legit.ng earlier reported that the CBN has rolled out a fresh rule that is already sending ripples through the travel community.
Under the new directive, Nigerians seeking foreign exchange for Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) will now receive only a fraction of their approved funds in cash.
The rest will be pushed to prepaid cards, marking one of the most significant changes to travel forex in recent years.
Source: Legit.ng
