Nigerian naira quoted at record low on black market

ABUJA: The Nigerian naira hit a new record low of 549 against the dollar on the black market on Monday, traders said, as buyers scrambled to secure scarce dollars.

The currency has been hitting new lows on the unofficial market following central bank actions to channel demand for the greenback from the black market.

The naira hit a low of 545 on the black market on Friday.

"The market has dried up of funding," one trader said. "The ban is creating artificial hikes as dealers now sell to the highest bidder."

The central bank in July banned dollar sales to bureaux de change operators, saying they had become conduits for graft and illicit money flows. It used to supply around $100 million weekly to exchange bureaux before the ban.

Nigeria's naira extends black market losses to hit new low against dollar

The naira traded at 412 per dollar on the official spot market on Monday, in the range of 407 to 412 naira where it has been since June.

Nigeria is battling dollar shortages brought on by low oil prices following disruptions linked to the COVID-19 pandemic. The central bank has devalued the currency three times since March 2020, but the naira has continued to weaken.