Naira Falls to Record Low In Parallel Market as Dollar Supply Drops Significantly By 62%

 The exchange rate between the naira and the US dollar closed at N411.63/$1 at the Investors and Exporters window, where forex is traded officially.

Naira appreciated against the US dollar to close at N411.63/$1 on Monday, representing a 37kobo gain when compared to N412/$1 recorded at the close of trading on Friday, 27th August 2021.

However, the naira further depreciated at the parallel market as it closed at N527/$1 on Monday, 30th August 2021, representing a N3 drop when compared to N524/$1 recorded on the previous trading day.

The naira slumped to a new record low against the dollar at the black market on Monday days after the CBN banned microfinance banks from foreign exchange transactions as dollar supply drops significantly by 62%.

According to Reuters, the stoppage of forex allocation to BDC operators by the CBN has drained liquidity in the black market and could further weaken the naira.