Naira weakened to a four-year low in the parallel market after the efforts of the Central Bank of Nigeria (CBN) to coax banks to sell more dollars to customers failed to bridge the widening gap between the official and street rates.
Unauthorized dealers were offering the naira at N502 per dollar on Wednesday from N500 last week, according to abokifx.com, a website that collates the data.
That’s the weakest since February 2017. The rate widens the spread between the official and the parallel market rate to 22% when compared with the spot rate of N411.13 a dollar as of 1.55 p.m. in Lagos on Wednesday.
The central bank uses lenders to make more foreign currency available to buyers, at around the official rate of between N410 to N412 to the dollar to reduce pressure on the streets where rates are crashing from excess demand.