Traders in the black market segment of the Nigerian foreign exchange (forex) market are battling the most severe crunch so far this year as the recovery of the currency business slows following easing of lockdown in the country.
The dollar shortage crisis, triggered by the movement restrictions and embargo on trade stemming from the virus outbreak, joins lack of forex proceeds coming from global crude oil crash to make activities in the market difficult.
At the unofficial market on Friday, the dollar sold for N455, having tarried at N450 without budging in the preceding three days, data from abokifx.com reveals.
As it did on Friday, Naira weakened against the dollar on Monday also, meaning it posted no gain throughout this week.
“With the fall in oil crude oil prices on Monday, we witnessed a lot of foreign investors portfolio, dropping their assets, most especially to convert to cash.
“The movement was as a result of recklessness on the side of the operators, when they want to speculate, but there is no reason for such because the Central Bank of Nigeria had continued to maintain support for liquidity to the BDC sub-sector,” said Aminu Gwadabe, President Association of Bureaux De Change Operators of Nigeria.
Reuters, however, envisaged in a Thursday report that Naira might weaken further in the days ahead.