The Nigerian Naira demonstrated significant strength against the US Dollar in the official Nigerian Autonomous Foreign Exchange Market (NAFEX) on Tuesday, December 23, marking a notable improvement in the domestic currency’s valuation. It appreciated by N6.57, or 0.45 per cent, closing the trading session at N1,449.99 per dollar, a considerable rally from the previous day’s rate of N1,456.56. This positive movement signals a potential stabilisation trend within Nigeria’s foreign exchange landscape, following a period of intense volatility.
Beyond its performance against the greenback, the Naira also recorded gains against other major international currencies in the official window during the same session. The local currency strengthened by N1.30 against the British Pound Sterling, trading at N1,956.03 per pound, an improvement from the preceding session’s N1,957.33. Similarly, the Naira gained N2.94 on the Euro, closing at N1,707.65, in contrast to the previous session’s closing price of N1,710.59, showcasing broad-based appreciation.
The positive momentum extended to other segments of the foreign exchange market, albeit with some variation. At the GTBank FX counter, the Nigerian Naira appreciated by N5 against the US Dollar, selling for N1,465 per dollar compared to the previous day’s N1,470. However, in the parallel or black market window, the Naira’s value remained unchanged at N1,485 per dollar, indicating a degree of stability but also highlighting the continued presence of a premium compared to the official market rates.
Market operators and financial analysts largely attribute this recent appreciation to a confluence of factors, primarily a significant increase in foreign exchange supply within the official market. Sustained interventions by the Central Bank of Nigeria (CBN) have played a crucial role in bolstering liquidity, alongside the positive impact of recent monetary and fiscal reforms implemented by the government. These strategic interventions aim to harmonise exchange rates and mitigate speculative activities that previously destabilised the currency.
Furthermore, improved liquidity inflows from key economic players, particularly exporters and foreign portfolio investors, have substantially contributed to easing the persistent pressure on the local currency. This enhanced supply has fostered more orderly trading conditions within the market, a welcome development especially during the festive season. The CBN’s commitment to market-led reforms and transparent mechanisms appears to be yielding tangible results in stabilising the Naira’s value after periods of considerable fluctuation.
Analysts widely regard the Naira’s recent performance as a positive indicator for the broader Nigerian economy. The narrowing spread between the official and parallel market rates represents a critical development, signaling greater transparency and predictability in the FX market. This convergence is expected to significantly enhance investor confidence, facilitate better business planning, and reduce short-term volatility risks, thereby encouraging more efficient price discovery and attracting foreign investment.
In a stark contrast to the positive trends observed in the traditional foreign exchange market, the global cryptocurrency market experienced a widespread downturn on the same day. Analysts suggest that this bearish sentiment stemmed from factors such as year-end tax-loss harvesting, where investors sell off assets to realise losses for tax purposes, coupled with dwindling market liquidity as the year draws to a close. This combination created downward price pressure across various digital assets.
Major cryptocurrencies recorded notable declines across the board. Dogecoin (DOGE) crumbled by 3.1 per cent, settling at $0.1281, while Solana (SOL) slumped by 2.9 per cent to $121.92. Cardano (ADA) also fell by 2.7 per cent, reaching $0.3582, and Ethereum (ETH) slid by 2.2 per cent to $2,926.25. Ripple (XRP) experienced a depreciation of 2.1 per cent, trading at $1.85, reflecting the broad market weakness that permeated the digital asset space.
Further declines were observed among other prominent digital currencies. Binance Coin (BNB) lost 2.0 per cent, selling for $838.21, while Bitcoin (BTC), the market’s leading cryptocurrency, declined by 1.4 per cent to $86,933.97. Litecoin (LTC) also went down by 0.2 per cent, trading at $76.33. Amidst these widespread declines, stablecoins such as the US Dollar Tether (USDT) and the US Dollar Coin (USDC) maintained their peg, trading steadily at $1.00 apiece, underscoring their role in market stability.
Despite the prevailing bearish sentiment and the year-end sell-off, some analysts maintain a cautiously optimistic outlook regarding a potential rally in the cryptocurrency market. However, significant recovery is not widely anticipated until liquidity returns to the market in January, following the typical seasonal slowdown and holiday period. Investors are closely monitoring market indicators for signs of renewed interest and substantial capital inflow in the upcoming new year.
![[post_title]](https://samony.com.ng/wp-content/uploads/2025/12/1766877077_NASCAR-US-news-Celebration-of-life-planned-for-Greg-Biffle-300x200.jpeg?lm=69506798 "Greg Biffle Family Celebration of Life Planned")
