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UPDATE 1-Nigeria naira at new low as FX scarcity hit black market -traders

Published 26/11/2020, 16:25
© Reuters.

(Adds details, background)
By Chijioke Ohuocha
ABUJA, Nov 26 (Reuters) - The Nigerian naira fell to a new
low of 488 in late trade on the black market on Thursday from
487 earlier as dollar scarcity hit the unofficial market,
traders said.
The naira has been weakening on the black market after the
central bank set policies to restrict access to the official
window, thereby funnelling demand to the parallel market that
holds less than 5% of trades.
The central bank in November tightened documentation
required for imports into the country, further shifting demand
to the black market.
Dollar demand has been swelling and piling pressure on the
naira. Importers with obligations have scrambled for hard
currency, while providers of foreign exchange, such as offshore
investors, have exited.
Central Bank Governor Godwin Emefiele on Tuesday responded
to calls for further depreciation of the naira, which has
weakened by 28% this year, by saying the black market rate
should not be used to determine the naira's value.

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