Data released by the Central Bank of Nigeria (CBN) indicated that the naira closed at N1,447.65 per dollar, compared to N1,445.39 on Tuesday. The movement represents a day-on-day depreciation of N2.26, underscoring the continued volatility in the country’s exchange rate environment.
In the parallel (black) market, however, the naira held steady at N1,475 per dollar, marking no change from Tuesday’s rate. The stability in the informal segment contrasts with the softening seen at the official window, suggesting that traders remain cautious as market liquidity and demand pressures fluctuate.
Depreciation Persists Despite Growing Reserves
The latest movement in the exchange rate comes at a time when Nigeria’s external reserves have been on an upward trajectory. According to CBN figures, foreign reserves rose to $44.92 billion on December 2, 2025, up from $44.67 billion on November 28. The steady buildup is seen as a sign of strengthening external buffers, yet it has not immediately translated into sustained currency appreciation.
The naira’s only recorded gain this week occurred on Tuesday, when it briefly appreciated before Wednesday’s reversal. Analysts say the currency continues to react to market demand, speculative pressures, and structural supply constraints, even as policymakers maintain efforts to stabilize the foreign exchange landscape.
Market Awaits Further Policy Signals
With the year drawing to a close, investors and market watchers are monitoring upcoming monetary policy guidance, reserve trends, and liquidity interventions that may influence exchange rate direction. While rising reserves offer some optimism, the naira’s performance remains tied to broader macroeconomic conditions, dollar inflows, and confidence in ongoing reforms.