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The Nigerian naira extended its slump in black-market trading as the nation’s dollar shortage deepened two months after the central bank moved to a more flexible exchange rate to encourage inflows.
The currency of Africa’s biggest crude oil producer weakened to 917 naira per dollar, compared with 900 naira the day before, according to Umar Salisu, a bureau de change operator who tracks currency data in the nation’s commercial capital.
Banks are unable to come up with the dollars to meet demand, and buyers are increasingly turning to the black market, widening the gap between the official exchange rate and the price on the street.
Nigeria’s central bank eased foreign exchange controls in mid-June as it sought to simplify its exchange-rate regime and kick-start dollar flows. That saw the official rate plunge 40%, briefly aligning with the black market.
It cost 782.38 naira to buy a dollar on Wednesday at the official rate, according to FMDQ OTC Securities Exchange.