The Nigerian naira commenced the month of December on a weak note, recording losses against the United States dollar in both the official and parallel foreign exchange markets on Monday, December 1, 2025.
Official and Parallel Market Pressures
Data from the Central Bank of Nigeria (CBN) revealed that the domestic currency weakened to N1,448.44 per US dollar at the Nigerian Foreign Exchange Market (NAFEM). This represents a decline from the N1,446.74/$1 rate quoted at the close of trading on Friday, November 28. The movement indicates a loss of N1.70 for the naira within a single trading day.
The bearish trend was mirrored in the unofficial market, where the naira also lost ground. According to reports from currency traders, the dollar was bought and sold at approximately N1,475/$1 on Monday. This marked a N5 depreciation from the N1,470/$1 rate observed at the end of the previous week.
CBN's Official Rates Against Global Currencies
The Central Bank's updated exchange rate window provided a snapshot of the naira's performance against other major global currencies. The published rates for Monday, December 1, included:
- Pound Sterling: N1,922.51
- Euro: N1,687.28
- Swiss Franc: N1,809.41
- Yen: N9.36
- Yuan/Renminbi: N204.82
- South African Rand: N84.85
A black market trader, identified as Abdullahi, noted that while the pound and euro rates remained stable at N2,204.40 and N1,853.70 respectively in that segment, the Canadian dollar saw a minor increase.
Reserves Growth Amidst Currency Challenges
This currency depreciation is occurring against the backdrop of rising Nigeria's foreign reserves. The reserves were reported at $44.61 billion as of November 27, 2025. CBN Governor, Olayemi Cardoso, has linked this accumulation to recent economic reforms.
Speaking after the Monetary Policy Committee (MPC) meeting in Abuja, Governor Cardoso defended the increase. He attributed the steady build-up to a more competitive naira and higher inflows from exports. These inflows are reportedly boosted by improved oil production, stronger non-oil export earnings, and better remittances from Nigerians abroad.
"The positive aspect is that these reserves are being built on a very systematic foundation," Cardoso stated. He emphasized that the current reserve levels offer a healthier import cover and benefit from structural reforms implemented in the foreign exchange market.
The contrasting scenario of a strengthening reserve position alongside a weakening currency highlights the complex and often delayed dynamics of forex market interventions and economic policy impacts.
