Nigeria’s Naira Hits Record Low as Dollar Scarcity Persists
Record Low for Naira
Nigeria’s naira plummeted to a historic low of 980 per dollar on the official market, according to Refinitiv data. This decline mirrors the currency’s weakness on the parallel market as the persistent shortage of dollars continues to plague the currency market.
Parallel Market Struggles
Last month, the naira fell below the 1,000 mark per dollar on the parallel market and has since continued to weaken. This decline is a result of excessive demand for dollars being redirected from the official market to the informal market. In June, restrictions on trading the currency were lifted, leading to this shift.
Central Bank Intervention
The central bank has announced occasional interventions in the foreign exchange market to enhance liquidity. As part of these efforts, the bank recently ended an eight-year ban on certain items, allowing them access to dollars on the official market. These measures aim to stabilize the currency and address the ongoing dollar shortages.
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