The value of the naira fell to an all-time low on Tuesday, trading at N1,482.57 and N1,491.00 on the official and unregulated markets, respectively.
Tuesday's forex market saw the naira fall to an all-time low vs the US dollar as the Central Bank of Nigeria (CBN) took steps to pay off dollar debt owing to international airlines that operate in the nation.
The official market closed on Tuesday with the naira at N1,482.57 per $1, according to data released by FMDQ. The rate denotes a 10% decline from the native currency's previous session on Monday, which was N1,348/$1.
Tuesday saw a further decline in the value of the local currency at the unofficial market due to persistent dollar scarcity and strong demand.
In the black market sector, the dollar was valued at N1,491.00 for every $1, as per Tuesday's parallel market values.
This suggests that there is a N8.4 spread between the official and unofficial window.
Issues
The CBN has promised to increase supply and clear the outstanding backlog of foreign exchange demand in response to the ongoing devaluation of the naira. The CBN has blamed the uncertainty on insufficient dollar liquidity.
The CBN, which had invested an extra $64.44 million in the industry, said on Tuesday that it had paid off all verified dollar backlogs to international airlines that were operating in the nation.
The most recent payment, according to the central bank, raises the total sum given to the aviation industry to $136.7 million.
The CBN expressed worries about traders providing “inaccurate and misleading information,” including underreporting transaction pricing, in a circular that was released on Monday. The CBN said that this information had an impact on the exchange rate.
The CBN stated that intentional attempts to manipulate the market by disclosing fraudulent transaction details would not be accepted and would result in consequences.
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