Nigeria's naira hits record black market low against dollar

ABUJA: The Nigerian naira hit a record low of 532 to the dollar on the black market on Monday, with dollars hard to come by, traders said.

The naira has been hitting new lows on the parallel market since July, following central bank actions to try to draw business into the official exchange channels.

The central bank has banned micro-lenders from dealing in foreign currency after clamping down on dollar sales to exchange bureaus, in a strings of curbs on the currency market.

It ordered lenders to publish the names of individuals that violate rules for buying dollars for foreign travel.

"Liquidity is thin," traders said.

Nigeria is battling dollar shortages brought on by low oil prices following disruptions linked to the COVID-19 pandemic. The central bank has devalued the currency three times since March 2020, but the naira has continued to weaken.

Demand is rising as individuals with dollar expenses such as school fees buy foreign currency from unofficial sources, traders said.

The naira traded at 410.50 per dollar on the official spot market on Monday, in the range of 407 to 412 naira where it has been since June.