Nigeria’s currency saw a modest decline at the official foreign exchange market on Monday, closing at N1,451.86/$, up slightly from N1,450.43/$ recorded last Friday. Data from the Central Bank of Nigeria’s (CBN) daily NFEM exchange summary showed that the naira reached an intraday high of N1,457/$ and a low of N1,450.25/$ during the trading session.
Market analysts attribute the mild depreciation to cautious trading as demand for foreign exchange edges higher ahead of the year-end. Although liquidity remains relatively stable, even small shifts in dollar supply can influence rates, reflecting the sensitivity of the market to seasonal pressures and investor sentiment.
The naira’s movement has remained within a narrow band, suggesting that the market is gradually adjusting while waiting for further policy signals from monetary authorities. Analysts note that this controlled fluctuation indicates resilience in the official segment, despite external pressures such as geopolitical tension and global dollar demand.
At the parallel or “black” market, the naira held steady at N1,463/$, according to Cowry Asset Management. This stability underscores the differing dynamics between the regulated official FX market and the informal segment, where rates often respond to local supply and demand more sharply.
Looking back, the naira faced more pronounced pressures in November 2025, with geopolitical tensions and elevated dollar demand temporarily halting its steady appreciation. Analysts from AIICO Capital reported that interventions by the CBN and foreign inflows helped buffer the market, contributing to a stronger external reserves position at $44.67bn, providing a safety net against sudden volatility.
source: punch