Nigeria’s naira hit a record low of 1,100 per dollar on the black market on Wednesday, online platform abokiFX showed, a day after the currency hit a new low on the official market due to persistent dollar shortages. The naira has been in freefall on the unofficial market, where it trades freely, which worsened after currency restrictions were lifted on the official market. The unit fell to a record low of 980 naira to the dollar on the official market on Tuesday.
The central bank has said it will intervene in the foreign exchange market occasionally to boost liquidity, after last week ending an eight-year ban on some items that were restricted from accessing dollars on the official market. Last month, the currency slid past 1,000 naira per dollar on the black market and continued to weaken as excess dollar demand is funnelled into the informal market from the official market.
Reporting by Chijioke Ohuocha; Editing by Richard Chang REUTERS