The naira yesterday crashed to a record low of N1,370 /$ at the parallel market, inching closer to N1,400/$ rate.
The depreciation of the local currency was mainly as a result of shrinking dollar supply from the Central Bank of Nigeria (CBN), authorised dealers (mainly commercial banks) and autonomous market sources.
The local currency traded at N1,365/$ at the parallel market on Tuesday but was relatively stable at the official market where it exchanged at N882/$, data from the FMDQ Exchange showed.
A BDC operator in central Lagos, Tamiu Abiodun, said the naira will continue to fall, unless there is urgent policy change that increases dollar liquidity.
“It is a matter of demand and supply. The demand for dollar keeps rising everyday, without commiserate supply from authorised dealers or the Central Bank of Nigeria,” he said.
The naira fall continued despite uptick in crude oil prices. Brent is trading at $79bp after the Energy Information Administration (EIA) forecasts tighter markets on slimmer OPEC+ output.
President, Association of Bureaux De Change Operators of Nigeria (ABCON), Dr. Aminu Gwadabe, advised the Federal Government to enhance financial intelligence by tracking people with proceeds of corruption to sanitize the market.