The Naira has weakened today at the parallel market (popularly known as Black Market) as it trades at N454 to $1.
The development could be attributed to the high demand for the dollar by foreign investors and business owners, whose with dollar payment obligations have accumulated amid a shortage of the currency. The naira had firmed on the unofficial market last week after a coronavirus lockdown was eased.
Meanwhile, the naira is seen ranging on the official and the currency spot markets, bank currency traders said, as buyers resist weakening of the naira since the majority of dollar supply is from the Central Bank of Nigeria.
The CBN Governor, Godwin Emefiele, in a statement issued last Sunday, said,“Investors interested in repatriating their funds from the country are guaranteed to get their money, notwithstanding the drop in the revenue from crude oil.”
The Central Bank started the sales of forex to commercial banks on April 28, 2020, to help importers and individuals with dollar expenses abroad ramp up economic activity following a phased easing of the coronavirus lockdown.
Lately, at the forward market, the naira recently depreciated exchanging at an all-time high against the dollar, with the 5 years non-deliverable forwards falling to N570/$1 from N413/$1. Meanwhile, the apex bank insisted that it has enough dollars to meet demand.