The naira hit another record low of 241
against the dollar at the parallel market on Monday as the Central Bank
of Nigeria’s restrictions on foreign exchange sale fuelled unofficial
trade in dollars, Reuters reported.
The ban on importers from accessing the
Nigerian foreign exchange markets for the importation of 41 items had
led to the volatility of the naira-dollar exchange rate at the black
market.
Since June 23 when the new forex rule
became operational, the naira has fallen by 10.5 per cent from 218 to
241 against the greenback.
Foreign exchange dealers said the artificial scarcity of the United States currency still pervaded the market.
The new forex rule had led to huge demand
at the parallel market, causing dealers to hoard the dollar in
anticipation of further fall in the naira
Economic analysts had said the CBN needed
to devalue the naira to allow the local currency achieve an equilibrium
price against the dollar.
The central bank had however said it
would not be focusing on the thinly-traded parallel market when
determining the exchange rate, adding that people preferred to use the
unofficial market for undocumented transactions.
Foreign investors had been on the
sideline, waiting for the CBN to devalue the naira before investing in
naira-denominated assets.
Local and foreign analysts had predicted
that the naira might hit 250 against the dollar at the parallel market
any time soon if the artificial scarcity trend continued.
The central bank appears to be in a fix as the spread between the official and parallel market continues to widen by the day.
Meanwhile, stocks fell to a more than three-month low and the naira on Monday, Reuters reported.
The local bourse, which has the
second-biggest weighting after Kuwait on the MSCI frontier market index,
dropped for the ninth consecutive day as investors shed banking,
consumer and oil shares.
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