CBN Interventions Keep Naira Stable Amid Black Market Pressure

CBN Interventions Keep Naira Stable Amid Black Market Pressure

The Nigerian naira maintained a cautious but steady stance against the United States dollar on December 18, 2025, as activities in both the official foreign exchange market and the parallel (black) market reflected heightened year-end demand for forex.

At the Nigerian Foreign Exchange Market (NFEM), the naira opened trading at about ₦1,453.25/$, improving slightly from the ₦1,458.02/$ closing rate recorded on Wednesday. Early trades saw the currency fluctuate between a high of ₦1,460.75/$ and a low of ₦1,453.07/$, pointing to mild volatility driven largely by corporate demand and import settlements as businesses prepare to close their annual accounts.

Market watchers attributed the relative stability to sustained Central Bank of Nigeria (CBN) interventions, noting that timely liquidity injections through authorised dealers helped cushion the naira against sharper depreciation despite increased festive-season demand.

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In contrast, the parallel market continued to trade at a significant premium. Bureau De Change (BDC) operators in Lagos, Abuja and Kano quoted rates ranging from ₦1,720 to ₦1,735 per dollar, as demand for travel allowance and holiday-related imports intensified.

Analysts said the persistent gap between the official exchange rate and the black market rate remains a concern for policymakers, underscoring structural supply-demand imbalances in the retail forex segment.

Key drivers influencing the exchange rate include rising year-end import demand, ongoing CBN FX supply interventions, and stable global crude oil prices, which have helped support Nigeria’s foreign reserves and strengthened the central bank’s capacity to stabilise the market.

Looking ahead, experts project that the naira will likely trade within the ₦1,450–₦1,465 range at the official window in the near term, while the parallel market may experience slight further depreciation if retail forex demand continues to outstrip supply.

CBN Interventions Keep Naira Stable Amid Black Market Pressure