Thursday’s naira traded on the parallel market at N450 to dollar as the build-up on dollar demand continued to increase.
The naira is seen as falling on the black market as demand for dollars is increasing from foreign investors and importers with payment obligations accrued amid hard currency shortages caused by an oil price crash, traders said.
Apart from devaluing the naira in March, Nigeria’s Central Bank (CBN) also introduced a single exchange rate, raising the Naira’s official rate to N376 to the dollar for Foreign Money Transfer Operators’ rate to banks; N377 to the dollar for CBN’s dollar selling to banks, and sticking CBN’s dollar sales to banks at N378.
The CBN has previously raised the official rate to N360 from N307 to the dollar and now selling dollars to foreign portfolio investors (FPI) at N380 from N366 per dollar at the Investors & Exporters FOREX window.
However the move has failed to boost the local currency that many analysts believe can face second round devaluation.
However, traders say the naira is seen steadily on the official and over-the-counter spot markets as bidders avoid currency weakening because most dollar supply comes from the CBN.
Last week, the bank resumed forex sales to help importers and individuals with dollar spending abroad ramp up economic activity after the coronavirus lockdown has been phased off.