The value of the hit another record low on the parallel market on Monday, July 13, as the Central Bank of Nigeria, CBN, restrictions drove unofficial trade in dollars.
At the black market, the naira weakened by 1.0 per dollar, indicating high demand for the dollar in the market.
On Friday, July 10, the naira hit fresh lows against the dollar on the parallel market, after a government liquidity injection to help cash-strapped states offset a funding crisis hit the currency.
The currency slid to a new record low of N240 on the parallel market, down 2.1 per cent, as persistent dollar shortages continued, two traders said.
The President of Nigeria’s Bureau de Change Association, Aminu Gwadabe, said he saw an increase in demand on Friday, July 10 as individuals tried to convert their naira to dollars.
“There is a lot of demand with the recent injection of cash by the government. Part of the funds is being converted to dollars,” Gwadabe told Reuters.
The CBN had said it would not be focusing on the thinly-traded parallel market when determining the exchange rate, stating that people preferred to use the unofficial market for undocumented transactions.
