Nigeria’s naira is seen weakening on the black market as dollar demand balloons from foreign investors and importers with payment obligations that have accumulated amid hard currency shortages triggered by an oil price crash, traders said.
The black market naira traded on the streets fell to 450 against the dollar on Thursday, reflecting the build-up of demand pressure. The naira had firmed on the unofficial market last week after a coronavirus lockdown was eased.
Meanwhile the naira is seen rangebound on the official and over-the-counter spot markets, traders say, as bidders resist weakening the currency since the majority of dollar supply is from the central bank.
The bank resumed forex sales last week to help importers and individuals with dollar expenses abroad ramp up economic activity following a phased easing of the coronavirus lockdown.