The Nigerian naira has continued on a downward slide against the dollar amid coronavirus pandemic.
The naira continued its crash against the dollar on Thursday as it exchanged at N450 to dollar at the parallel market.
The latest metric is as a result of high demand for dollar from foreign investors and importers who are desperate to fulfill their international payment obligations.
Also, the crash in oil price and coronavirus pandemic affected the naira negatively.
Aside devaluing the naira in March, the Central Bank of Nigeria (CBN) also adopted a unified exchange rate, and pushed the official rate of the naira to N376 to dollar for International Money Transfer Operators rate to banks; N377 to dollar for banks’ dollar sale to CBN and pegged CBN’s dollar sales to banks at N378.
The CBN also moved the official rate to N360 to the dollar from N307 per dollar previously and now selling dollar to foreign portfolio investors (FPI) at N380 at the Investors’ & Exporters FOREX window from N366 per dollar previously.
But the move has failed to strengthen the local currency which many experts fear could face second round of devaluation.
Meanwhile, the naira is seen steady on the official and over-the-counter spot markets, traders say, as bidders resist weakening the currency since the majority of dollar supply is from the CBN.
The bank resumed forex sales last week to help importers and individuals with dollar expenses abroad ramp up economic activity following a phased easing of the coronavirus lockdown.