ABUJA: The Nigerian naira fell to a new low of 488 in late trade on the black market on Thursday from 487 earlier as dollar scarcity hit the unofficial market, traders said.

The naira has been weakening on the black market after the central bank set policies to restrict access to the official window, thereby funnelling demand to the parallel market that holds less than 5% of trades.

The central bank in November tightened documentation required for imports into the country, further shifting demand to the black market.

Dollar demand has been swelling and piling pressure on the naira.

Importers with obligations have scrambled for hard currency, while providers of foreign exchange, such as offshore investors, have exited.

Central Bank Governor Godwin Emefiele on Tuesday responded to calls for further depreciation of the naira, which has weakened by 28% this year, by saying the black market rate should not be used to determine the naira's value.