The Nigeria’s currency, naira hit a record low of 400 to a dollar today in the black market, the lowest since the implementation of the floated policy of the Central Bank.
On the official interbank market, the naira ended at 311 per dollar, 0.3 percent weaker, after trades worth $12.63 million. The naira has dropped steadily on the black market this week after opening at 381 on Monday. Traders say dollar demand has been high from individuals travelling abroad for their summer holidays.
The Central Bank has told international money transfer operators to pay dollar proceeds from customer transfers into local commercial banks in naira, while selling the dollars themselves to bureaux de change outlets. The bank hopes the move will help narrow the gulf between the official and black market rates and boost dollar liquidity.
The situation is worsen by some suppliers of dollars, including oil firms, are now selling some of their hard currency directly to petrol importers under an arrangement with the government.
