The Naira may continue losing value at the parallel market segment of the currency market as demand for dollar intensifies from accumulation of past foreign exchange requests among international investors and importers amidst a liquidity crisis induced by oil price slump.
“Members of the Manufacturers Association of Nigeria have been unable to access hard currency for the past five weeks, the group said in a report at the weekend. Investment bank FBNQuest estimates there’s a $1 billion backlog of unmet dollar demand in Nigeria,” Bloomberg reports.
Naira had fallen to N450 against the dollar at the black market on Thursday in response to increasing strain mounted by demand.
Last week at the market, Naira had remained firm following the loosening of the coronavirus lockdown.
However, the currency is expected to stay within a certain range at the official and over-the-counter spot markets according to traders as bidders rule out the possibility of weakening the Naira since the biggest chunk of dollar supply comes from the central bank.
The apex bank restarted forex sales to importers and individuals last week to help settle dollar obligations overseas and boost commercial operations after days of break.
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