Yuletide Rush Pushes Naira Lower Across FX Markets on Dec 10

Festive-season demand continued to weigh on the naira on Wednesday, December 10, as the currency weakened against the U.S. dollar across both the parallel market and the Nigerian Foreign Exchange Market (NAFEM).

Currency dealers in Abuja told Economic Confidential that the naira traded at ₦1,480/$1 for buying and ₦1,490/$1 for selling, marking a ₦5.33 depreciation from Monday’s closing rate of ₦1,485/$1.

At the official window, the naira also slipped to ₦1,455/$1, compared with ₦1,451/$1 recorded on Tuesday.

Bureau de Change operators explained that the naira typically weakens around November and December due to heightened demand for dollars. They noted that many Nigerians rush to purchase foreign currency for holiday travel, remittances, school fees, and Christmas-related imports, adding that the expectation of a seasonal decline further fuels dollar buying.

Analysts said the movements across both markets underscore the persistent pressure on Nigeria’s foreign exchange environment, attributing the volatility to speculative trading and lingering uncertainty surrounding the Central Bank of Nigeria’s policy direction.