Naira Ends 2025 Woefully Despite CBN’s Interventions, Reserves Increase
- The naira fell against the US dollar despite CBN's dollar sales aimed at market stability
- Nigeria's external reserves increased to $45.45 billion, offering temporary support for currency management
- Global oil prices remain steady amid geopolitical tensions, while gold rebounds, showcasing investors' safe-haven preferences
The naira ended 2025 on a sour note, depreciating further at the official foreign exchange window despite sustained dollar sales by the Central Bank of Nigeria (CBN) aimed at stabilising the market.
The weak close capped a year defined by heavy intervention, fragile confidence, and persistent demand pressures.
Source: Getty Images
Data from the central bank showed that the naira weakened by ₦3.17 against the US dollar to close at ₦1,445.68/$ at the official window.
During the trading session, the currency moved within a relatively narrow band of ₦1,443.00 to ₦1,447.00 per dollar, underscoring the tight but pressured conditions in the market.
CBN steps in again with dollar sales
In another bid to support liquidity and calm volatility, the apex bank sold $50 million to authorised dealer banks.
The intervention is part of an ongoing strategy to boost aggregate dollar supply and manage sharp swings in the exchange rate.
Market analysts note that while these interventions have helped prevent more dramatic losses, they have not been sufficient to reverse the broader weakness of the currency.
Broadstreet analysts said year-end expectations remain anchored on the central bank’s willingness to keep injecting foreign exchange into the market to moderate pressure on the naira.
However, concerns persist that repeated interventions, without a lasting improvement in dollar inflows and confidence, may only offer temporary relief rather than a durable solution.
External reserves offer a bright spot
In contrast to the naira’s performance, Nigeria’s external reserves recorded a modest but notable improvement.
According to a report by MarkeForces Africa, the reserves stood at $45.45 billion, reflecting a day-on-day increase of $177.99 million. This pushed the year-to-date growth to about 11.19 percent.
The rise in reserves provides the central bank with more firepower to continue defending the currency in the near term.
Analysts say the improved buffer could support market stability, even as questions remain about the sustainability of intervention-led currency management.
Oil prices hold steady amid global tensions
Global oil prices were largely stable on Tuesday, December 30, 2025, as investors weighed fading hopes of a Russia-Ukraine peace deal alongside rising geopolitical tensions in the Middle East, particularly around Yemen.
Brent crude gained 48 cents, or 0.78 per cent, to trade at $61.97 per barrel. Meanwhile, US West Texas Intermediate slipped slightly by 4 cents, or 0.07 percent, to $58.04 per barrel.
Energy analysts expect oil prices to remain volatile in the coming weeks as geopolitical risks continue to shape market sentiment.
Gold rebounds to cap a historic year
Precious metals staged a rebound after a sharp decline in the previous session, as investors refocused on geopolitical and economic risks. Gold’s renewed rally helped cap its strongest annual performance since 1979.
Spot gold rose by 0.83 per cent to $4,368.25 per ounce, while US gold futures climbed 0.94 per cent to $4,384.55.
Source: Getty Images
While analysts caution that profit-taking may emerge after the metal’s record run, gold continues to benefit from global uncertainty and safe-haven demand.
As 2026 approaches, the contrast between rising reserves and a weakening naira highlights the difficult balance facing Nigeria’s monetary authorities.
Naira opens last week of 2025 strong sgainst USD
Legit.ng earlier reported that the naira resumed from the Christmas holiday on Monday, December 29, with an 87 kobo, or 0.06% gain against the U.S. dollar in the Nigerian Foreign Exchange Market (NFEM), selling for N1,442.51/$1, compared with last Wednesday’s price of N1,443.38/$1.
Similarly, the naira strengthened against the pound sterling in the official market, rising by N3.91 to close at N1,945.66/£1, up from N1,949.57/£1 in the previous session. It also gained N4.25 against the euro, ending at N1,697.40/€1 compared with the prior session’s N1,701.65/€1.
At the GTBank FX counter, the naira appreciated by N8 against the U.S. dollar, closing at N1,457/$1, up from N1,465/$1 the day before.
Source: Legit.ng
