The naira recorded a mild depreciation against the United States dollar at the official foreign exchange market on Tuesday, reflecting mixed sentiment in Nigeria’s currency market as the year draws to a close.
Data from the Central Bank of Nigeria (CBN) showed that the local currency weakened to N1,445.68 per dollar on Tuesday, compared with N1,442.51 exchanged on Monday. This represents a day-to-day decline of N3.17 at the official window.
Market watchers note that the last time the naira depreciated at the official foreign exchange market was on December 18, when it traded at N1,457.84 to the dollar, indicating that the currency had largely maintained relative stability in the days that followed.
In contrast, the parallel (black) market remained unchanged, with the naira exchanging at N1,475 per dollar on Tuesday, the same rate recorded the previous day. The stability at the unofficial market suggests cautious trading activity as businesses and investors await clearer signals in the new year.
The mixed performance of the naira comes despite a continued increase in Nigeria’s external reserves, which rose to $45.45 billion as of December 29, 2025. Analysts say the growing reserves provide some buffer for the currency but note that broader market dynamics, including demand pressures and liquidity conditions, continue to influence short-term movements in the exchange rate.