Dollar to Naira: Exchange Rate Shows Stability at Official, Parallel Markets

Dollar to Naira: Exchange Rate Shows Stability at Official, Parallel Markets.

The Nigerian Naira showed little movement in its exchange rate with the United States Dollar as markets opened on Tuesday, December 23, 2025. This steadiness was observed in both the formal banking channels and the more informal street markets, providing a sense of calm in the final trading days before the Christmas holiday.

The consistency follows a series of measures by the Central Bank of Nigeria (CBN) aimed at regulating the flow of foreign currency within the official Nigerian Foreign Exchange Market (NFEM).

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Rates in the Official Market

Trading at the official NFEM window began with the Naira valued at about ₦1,455.95 to one US Dollar. This opening figure followed Monday’s closing rate of ₦1,459.43. Throughout the early hours of trading, the value moved in a narrow band, touching a high of ₦1,461.63 and a low of ₦1,452.65. Observers point to this tight range as an indication that the supply of dollars through official routes is currently meeting the core needs of businesses and individuals with approved requests.

The Parallel Market Picture

A different price point persists on the streets, where the Dollar is typically more expensive. Today, currency traders, known as bureau de change operators, are selling one US Dollar for between ₦1,720 and ₦1,745. For those looking to sell dollars, the buying rate offered by these traders sits between ₦1,710 and ₦1,730.

This difference between the official and street market rates continues to attract attention. While the CBN’s official window has seen a period of calm, the parallel market is more sensitive to immediate, local demand, which often increases during the holiday season.

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What’s Shaping the Exchange Rate?

As the year winds down, a few specific elements are influencing the value of the Naira:

• Holiday Spending: The Christmas and New Year period traditionally sees a jump in demand for foreign currency. Families travelling abroad and businesses importing goods for the season naturally need more dollars, which can strain available supplies.
• Central Bank Actions: The CBN’s regular foreign currency sales to licensed dealers have played a role in preventing sharper drops in the Naira’s value within the official market.
• Oil Market Performance: The price of crude oil on the world stage remains a critical factor for Nigeria. Since oil sales are the country’s main source of dollar revenue, stronger global prices generally bolster the Naira’s position.

Looking ahead, financial analysts believe the Naira could continue trading within these current ranges for the rest of the week. This forecast, however, depends on the continued management of dollar supply through official outlets to match the ongoing demand.

Dollar to Naira: Exchange Rate Shows Stability at Official, Parallel Markets.