Naira dips to record low of N409 to Dollar on black market


Nigeria’s currency, the Naira fell to an all-time low of N409 per dollar on the parallel market on Thursday, compared with N402 per dollar it closed the previous day as dollar shortage bite harder in Africa’s top crude producer.

Traders said the local currency fell due to increase demand for the dollar which they are unable to match with weak supply and the impact of the suspension of some commercial lenders from forex transaction by the Central Bank of Nigeria on Tuesday.

The CBN suspended nine banks from forex transactions on Tuesday for failing to remit money owed to the government, but re-admitted one of them UBA on Thursday after it remitted the fund.

“The suspension of some banks from transaction in the forex market has really increased pressure on the market,” said Aminu Gwadabe president of Bureaux de change association.

He said most of Bureaux de change have their accounts with the banks suspended by the central bank and this has reduced access to forex causing the naira to tumble.