Naira–Dollar Rate: Festive FX Demand Fails to Rattle Market as Calm Trading Persists

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The Nigerian naira held firm against the United States dollar on Christmas Eve, Tuesday, December 24, 2025, defying the usual surge in foreign exchange demand that accompanies the Yuletide season.

Checks from the Nigerian Foreign Exchange Market (NFEM) and leading Bureau De Change (BDC) centres indicate that the local currency experienced only minor movements across both the official and parallel markets, pointing to a relatively balanced FX environment.

At the official window, the naira traded at an average of about ₦1,453.70 per dollar, improving slightly from the previous closing rate of ₦1,461.50. Early trading saw the currency soften briefly to around ₦1,460.75/$, before recovering as liquidity conditions strengthened during the day.

Data from the Central Bank of Nigeria (CBN) showed the reference mean rate hovering close to ₦1,454, reinforcing the overall stability observed in the official segment.

Market watchers say this resilience is notable, given the increased demand typically driven by travel allowances, import payments, and end-of-year corporate transactions. A Lagos-based currency trader told Vanguard that steady inflows and policy consistency have helped cushion the market.

“Festive seasons usually come with intense pressure, but interventions and stronger inflows—particularly from diaspora remittances—have played a big role in keeping rates steady,” the trader explained.

In the parallel market, the dollar continued to command a premium over the official rate, though the margin remained modest. Spot checks in Lagos and Abuja showed buying rates ranging from ₦1,465 to ₦1,475, while selling prices stood between ₦1,480 and ₦1,490 per dollar.

BDC operators attributed sustained activity in the informal market to retail demand from individuals seeking quick access to foreign currency for holiday-related spending.

Financial analysts believe the narrowing gap between the official and parallel markets reflects the impact of ongoing FX reforms and convergence efforts by monetary authorities. They also noted that the calm seen toward the end of 2025 contrasts sharply with the volatility that defined previous festive periods.

Experts further pointed to improved transparency in price discovery under the NFEM and a more balanced supply-demand dynamic as key factors easing speculative pressure on the naira.

Looking ahead, market participants expect the currency to trade within the ₦1,450–₦1,500 range in the near term, unless disrupted by major global economic shocks, oil price swings, or sudden changes in capital flows.

For now, the naira appears poised to close the year on a more stable note, offering cautious optimism to businesses, investors, and consumers alike.