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Forex crisis defies CBN reforms as Naira hits record low of N848/$ on official market

Nigeria’s forex crisis has defied the Central Bank of Nigeria’s recent reforms as the Naira closed trading at a record low of N848.12 per dollar on the official market on Tuesday.

FMDQ’s official data on its website said that the country’s currency continued to depreciate as dollar shortages persisted.

The N848.12/$1 forex exchange rate on Tuesday is 9 per cent lower than the closing rate of N778/$ on Monday, representing the biggest single-day decline this month.

The currency also fell to a low of N1,050 per dollar on the parallel market amid strong demand for dollars.

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On Tuesday, one of the traders said that individuals who want to travel for business, school, health and tourism are buying dollars from the street traders because they could not meet their demands from the official market.

Pmnews.ng recalled last week that CBN has said it will occasionally intervene in the foreign exchange market to boost liquidity after an eight-year ban ended last week.

The embattled Naira could, however, be set for a lift after lawmakers approved plans by the government to secure a $1.5 billion loan from the World Bank.

Meanwhile, on Monday, Wale Edun, the Finance Minister, told reporters in Abuja, the capital city, that the funding will be concessionary and is expected to be secured by December.

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He said Nigeria will also seek $80 million of financing from the African Development Bank.

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