New Naira Exchange Rate As FX Reserves Fall First time in 2 Months
- The naira has dropped in value at the official market and traded at N1,510/$ in the parallel market due to sustained demand pressure
- Also, Nigeria’s external reserves fell to $45.21 billion as of 17 December 2025, marking the first decline in over two months
- The CBN’s November 2025 Business Expectations Survey projects the naira to gradually appreciate over the next six months
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The naira fell by N10 against the US dollar last week, settling at N1,464.50/$ at the official market, as Nigeria’s external reserves recorded their first decline in over two months.
The currency’s weakness comes amid sustained demand pressures at the foreign exchange window.
Source: Getty Images
Also, at the parallel market, according to CardinalStone, the naira traded at N1,510/$.
AIICO Capital, in its weekly report, said the naira weakened despite persistent interventions by the CBN and foreign portfolio inflows, as demand pressure continued to push the currency lower.
The report noted:
“The naira during the week weakened by N10.09/$ (-0.69 percent w/w). Notably, it traded within a range of N1,450 to N1,469.90 per dollar, with appreciation observed only on Tuesday."
The CBN’s November 2025 Business Expectations Survey indicated that the naira index could rise from 28.8 points to 42.2 points by May 2026, signaling potential stability and gradual strengthening in the currency market.
Foreign Reserves drop
Data from the Central Bank of Nigeria (CBN) shows that reserves dropped to $45.32 billion on 15 December from $45.47 billion previously.
The decline continued, falling to $45.27 billion before a further day-on-day reduction of $57.05 million brought reserves to $45.21 billion as of 17 December 2025.
This lowered the year-to-date gain to 10.60%, according to AIICO Capital.
Before this month, the last decline was recorded on 8 October, when reserves fell to $42.56 billion.
The past three months have seen steady growth in Nigeria’s reserves.
Foreign reserves closed September at $42.35 billion, rose to $43.19 billion in October, and stood at $44.69 billion by 28 November.
Source: Twitter
The reserves first crossed the $45 billion mark on 4 December, gaining $74.93 million to reach $45.04 billion.
Looking ahead, the naira is expected to gradually appreciate over the next six months.
Top bank predicts new naira to dollar exchange rate in 2026
Earlier, Legit.ng reported that the naira is projected to weaken between N1,650 and N1,700 in mid-2026, due to expected pressure driven by lower crude oil prices and a new monetary easing cycle.
This is the view of David Cowan, Citibank African economist in a note to clients.
His projection is a sharp contrast to the performance of the naira in both the official and unofficial markets.
But Citi cautioned that weaker oil prices next year could weigh on Nigeria’s foreign exchange earnings and amplify pressure on the currency.
Source: Legit.ng
