Foreign exchange trading opened calmly on Wednesday, December 10, 2025, with the Naira showing renewed stability across both the official and parallel markets. The steadiness comes as the financial system continues to absorb the Central Bank of Nigeria’s sweeping reforms in the Bureau de Change segment—a major restructuring that has tightened regulation and reshaped supply dynamics.
Official Market Trading
At the Nigerian Foreign Exchange Market (NFEM), the Naira traded at roughly ₦1,452.16 per Dollar, only slightly weaker than its opening level of about ₦1,451.30. The marginal intraday movement—less than 0.1 per cent—aligns with the narrow trading band that has characterised the market this week.
The official window has been hovering between ₦1,450.25 and ₦1,457.00, reflecting improved liquidity and reduced volatility compared with earlier months. The CBN recorded a closing rate of ₦1,454.00 on Monday, underscoring a more predictable pattern that market participants say is essential for planning and price-setting.
Parallel Market Conditions
The parallel market continues to trade near the official benchmark, with rates ranging from ₦1,460 to ₦1,478 per Dollar, depending on location and transaction size.
One of the most notable shifts is the shrinking spread between the two markets—now under ₦30. Analysts attribute the convergence to the CBN’s intensified crackdown on speculative activity and illicit arbitrage, measures that began in earnest late last month.
Impact of the CBN’s BDC Reforms
Much of the current stability is being linked to the CBN’s extensive “market reset,” which involved revalidating and relicensing BDC operators under a far stricter framework. Reports this week indicate that only 82 operators have secured final approval, a sharp reduction from the more than 4,000 licenses previously in circulation.
Under the revised structure:
- Tier 1 BDCs must meet a capital requirement of ₦2 billion,
- Tier 2 BDCs must hold ₦500 million,
—criteria that aim to formalise the segment, strengthen financial capacity, and eliminate lightly capitalised “briefcase” operators long blamed for distorting exchange rates.
Economic analysts note that while the Naira has not achieved significant appreciation in December, the sharp decline in volatility is a welcome development, especially for import-dependent firms preparing budgets for the 2026 fiscal year.
Short-Term Outlook
Most traders expect the Naira to trade within the ₦1,450–₦1,480 band for the rest of the week as the market continues to assess the full effects of BDC consolidation. Nonetheless, caution persists. Currency watchers are keeping an eye on global oil prices—still the backbone of Nigeria’s FX inflows—and on the trajectory of external reserves as key indicators of how the Naira may perform entering 2026.
The coming weeks will reveal whether the CBN’s aggressive reforms mark the beginning of longer-term currency stability or only a temporary pause in volatility.