The Naira showed resilience against the US Dollar in early trading on Thursday, December 4, 2025, maintaining a narrow gap between the official and parallel markets as the country enters the final month of the year.
Official Market (NFEM):
Data from the Nigerian Foreign Exchange Market (NFEM), also known as NFEM, indicates the Naira is trading at approximately ₦1,445.54 per Dollar as of this morning. Market activity shows stability, with the currency fluctuating between an intraday high of ₦1,448.20 and a low of ₦1,444.90. This sustained performance reflects the Central Bank of Nigeria’s (CBN) continued efforts to unify rates and improve liquidity through the Electronic Foreign Exchange Management System (EFEMS).
Parallel Market (Black Market):
In the unauthorised parallel market, the Naira is trading at an average of ₦1,468 per Dollar, keeping the premium between the official and street rates significantly compressed compared to previous years. Dealers report moderate demand, with the rate holding steady near the ₦1,470 mark observed earlier in the week.
Economic Context:
The relative stability of the Naira comes amid a backdrop of improving macroeconomic indicators. One year after the full implementation of the EFEMS framework, the currency has recovered from its historic lows of 2024.
Inflation Decelerating:
The National Bureau of Statistics (NBS) recently reported that headline inflation dropped to 16.05% in October 2025, the seventh consecutive month of decline. This easing of price pressures has been a key factor in restoring confidence in the local currency.
Monetary Policy Stance:
To lock in these gains, the CBN’s Monetary Policy Committee (MPC) voted on November 25 to retain the Monetary Policy Rate (MPR) at 27%. The decision to hold the rate — following a slight cut in September — signals the apex bank’s commitment to keeping inflation in check while supporting the stabilised exchange rate.
Outlook and Regulatory Changes
Market sentiment remains cautiously optimistic as foreign portfolio inflows have stabilized, boosting external reserves to approximately $44.66 billion.
Investors and citizens are also adjusting to the CBN’s newly announced cash management guidelines. Effective January 1, 2026, stricter cash withdrawal limits will be enforced to curb money laundering and reduce the cost of cash management, a move expected to further drive the adoption of electronic channels and support the Naira’s long-term value.
Leave a Reply