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Economy

Naira's black-market rate down to lowest in more than a year

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Nigeria’s naira is coming under pressure again.

Friday 30, November 2018

(Bloomberg)--It depreciated to 370 per dollar, the weakest level since August 2017, on the black market on Thursday, according to abokiFX.com, which collates rates from street-traders in Lagos, the nation’s commercial hub. On the interbank market, the currency fell 0.7 per cent to 365.73, its weakest since August 2017.

The decline comes after the price of crude oil plummeted 31 per cent since early October, curbing export revenue for Africa’s biggest producer and exacerbating a shortage of dollars. Nigeria’s also experienced bond and stock outflows this year amid the rout in emerging-market assets.

The central bank will sell an additional $15,000 per week to each of the more than 4,000 registered foreign-exchange dealers at 357 naira, starting from 6 December, it said in an emailed statement. Dealers can already buy $20,000 three times weekly. The aim is to meet rising dollar demand from travelers ahead of the Christmas holiday season, it said.

TAGS : abokiFX.com, bond outflows, stock outflows

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