Dollar to Naira Exchange Rate Today, December 16, 2025

The Dollar to Naira exchange rate today, Tuesday, December 16, 2025, reflects a period of mixed stability in Nigeria’s foreign exchange market, with the Naira maintaining relative strength at the official window while continuing to trade at a premium in the parallel market.

Data from the Nigerian Foreign Exchange Market (NFEM) and information from Bureau De Change (BDC) operators indicate that the Central Bank of Nigeria’s stabilisation measures are yielding modest results, even as structural challenges persist.

Nigerian Foreign Exchange Market (NFEM) Rate

According to real-time data from the official Nigerian Foreign Exchange Market, the Dollar to Naira exchange rate today closed early trading at ₦1,452.27 per US Dollar.

This performance suggests continued efforts by the Central Bank of Nigeria (CBN) to keep the official rate within a controlled band. During the opening hours of trading, the Naira fluctuated narrowly between approximately ₦1,451.19 and ₦1,452.57, signalling reduced volatility compared to recent weeks.

Analysts note that this stability is partly driven by targeted liquidity injections and tighter monitoring of FX allocations to authorised dealers.

Parallel Market (Black Market) Rate

In contrast, the Dollar to Naira exchange rate today in the parallel market continued to trade higher than the official window.

Information obtained from BDC operators and street traders shows that the US Dollar exchanged at an average rate of ₦1,465 to ₦1,475 for cash transactions on Tuesday.

This persistent premium reflects ongoing demand-supply imbalances, especially among small businesses, importers, and individuals whose foreign exchange needs are not fully met through the official NFEM channel.

Market observers have repeatedly expressed concern that the gap between official and parallel rates encourages speculative trading and arbitrage activities.

Naira Performance at the Start of the Week

The Nigerian Naira began the week on a positive note at the official market. Central Bank of Nigeria data showed that the currency strengthened to ₦1,451.82 per dollar on Monday, improving from ₦1,454.41 recorded on Friday.

This represents a gain of ₦2.59 against the US Dollar, highlighting short-term confidence in the official foreign exchange framework.

However, the black market told a different story, as the Naira dipped slightly by ₦2 to trade around ₦1,493 per dollar, compared to ₦1,495 recorded previously.

Foreign Reserves Boost Market Confidence

One of the key factors supporting the Naira is Nigeria’s rising foreign reserves. As of December 12, 2025, the country’s external reserves stood at approximately $45.47 billion.

The steady increase in reserves has provided the CBN with greater capacity to intervene in the foreign exchange market, easing pressure on the Naira at the official window.

Last week, reports indicated that the Naira appreciated only once against the US Dollar, underscoring the fragile nature of the current recovery.

Market Outlook

Currency analysts attribute the relative calm in the official market to a slowdown in corporate FX demand as the year draws to a close, combined with policy-driven liquidity management by the Central Bank.

Nevertheless, the sustained premium in the parallel market suggests that deeper structural issues remain unresolved, including import dependency, speculative demand, and inflationary pressures.

As market participants look ahead, attention remains firmly fixed on future monetary policy decisions aimed at exchange-rate unification, inflation control, and long-term stability of the Naira.

For now, the Dollar to Naira exchange rate today reflects cautious optimism at the official level, tempered by persistent challenges in the unofficial market.