Dealers Quote Dollars at New Rate as CBN Intervenes Amid Naira’s Slide
- The naira faced renewed volatility in the Nigerian Foreign Exchange Market (NFEM) due higher dollar demand
- The naira’s exchange rate depreciated following intense lobbying for the US greenback at NFEM on Thursday, December 18, 2025
- However, Nigeria’s external reserves have remained strong and robust, giving hopes that the naira is on a sure footing
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Nigerian naira weakened further at the official foreign exchange market, with the dollar trading at higher rates despite ongoing intervention by the Central Bank of Nigeria.
The latest movement reflects sustained pressure from strong demand for foreign currency and limited supply inflows across key FX channels.
Source: Getty Images
At the Nigerian Foreign Exchange Market window, the naira depreciated by 0.16% to close at ₦1,457.84 per dollar, compared with ₦1,455.49 recorded in the previous session.
Market data showed that the currency briefly touched an intraday high of ₦1,462.90 per dollar, the weakest level seen so far in December, underlining persistent demand-side pressure.
Weak supply keeps market under strain
Traders attributed the latest depreciation to insufficient dollar inflows from the usual sources.
Supply from the apex bank, exporters, foreign portfolio investors and non-bank corporates remained too weak to counter rising demand for dollar payments linked to imports, debt servicing and corporate obligations.
The intraday spot FX rate was quoted around ₦1,456 per dollar, marking the weakest performance in nearly two weeks.
Although the Central Bank has continued with FX intervention sales, market participants say the scale of support has only slowed the pace of depreciation rather than fully stabilising the naira.
Analysts note that the currency has repeatedly surrendered early gains in recent sessions, suggesting that underlying structural pressures remain unresolved despite policy support.
Meanwhile, they remain optimistic, stating that Nigeria's foreign reserves, which are at six-year high at $45 billion provides enough firepower to cool the forex markets.
"The current volatility is seasonal. We will begin to see a more stable naira as we approach the end of the year and the beginning of 2026," Janet Ogochukwu, senior banker and economist, told Legit.ng.
Parallel market mirrors official weakness
Pressure on the naira was also evident in the parallel market, where the currency slipped by about 0.20% to trade at ₦1,474 per dollar.
The widening weakness across both the regulated and informal segments points to broad-based demand for foreign currency and lingering confidence issues.
According to a report by Market Forces Africa, the continued gap between official and parallel market rates remains a concern for businesses, as it complicates pricing decisions and raises transaction costs, particularly for import-dependent sectors.
Oil prices rise on geopolitical tensions
In the global commodities market, oil prices rallied by more than one per cent following renewed geopolitical tensions. U.S. President Donald Trump ordered what he described as a complete blockade of sanctioned oil tankers entering and leaving Venezuela, heightening concerns about supply disruptions.
Checks by Legit.ng showed that Brent crude rose by $1.17, or 1.99%, to $59.84 per barrel, while U.S. West Texas Intermediate gained 97 cents, or 1.76%, to settle at $56.10 per barrel.
The rebound in oil prices offered some relief to oil-exporting economies, including Nigeria, although the FX impact may take time to filter through.
Gold extends strong rally
Gold prices also advanced sharply, recording their strongest performance since the 1979 oil crisis.
Spot gold climbed 0.79% to $4,337.85 per ounce, while U.S. gold futures rose 0.88% to $4,370.50 per ounce.
The precious metal has doubled in value over the past two years, defying expectations of a major correction.
Market sentiment remains bullish, with investors positioning for further gains into 2026 amid geopolitical risks and global economic uncertainty.
Source: Getty Images
Outlook remains cautious
Looking ahead, analysts expect commodities to maintain a firm tone, with oil supported by geopolitical risks and gold benefiting from safe-haven demand.
For the naira, however, sustained stability is likely to depend on stronger FX inflows, improved confidence and more durable supply-side support in the foreign exchange market.
FX rate gap between official, black markets widens
Legit.ng earlier reported that the naira traded on a mixed note across Nigeria’s foreign exchange markets on Tuesday,
December 16, 2025, as rising international payments and year-end import demand intensified pressure on dollar supply.
While the local currency appeared relatively calm at the official window, a widening gap emerged between the regulated and informal segments of the FX market.
Source: Legit.ng
