The naira suffered further depreciation to a record low of N1,235 per dollar on Tuesday, following strong demand on the parallel market, also known as black market.
This represents a 2.06 per cent (N25) weaker value than the N1,210 recorded on Monday, when Naira had strengthened against the dollar, gaining 1.85 per cent at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
Naira appreciation came after the finance minister Wale Edun said on Monday that Nigeria was expecting as much as $10 billion in new foreign currency inflows in the next few weeks to ease acute dollar shortages in the foreign exchange market.
After trading on Monday at the NAFEM, one dollar was quoted at N793.34, which was stronger than N808.27 quoted on Friday, data from the FMDQ showed.
Willing buyers and willing sellers offered and sold at a bid rate of N900/$ high and N701/$ low. The daily FX market turnover increased marginally by 2.89 percent to $81.55 million on Monday from $79.26 million recorded on Friday at the official market.
Analysts say they expect Nigeria’s currency to stabilise in the short-term if the expected $10 billion flows through the economy.
