Naira weakens further against dollar across markets
The Nigerian currency extended its decline against the United States dollar on Wednesday on both the official and parallel markets amid concerns over the foreign exchange backlog the central bank is struggling to clear.
The naira slid to a new record low of 1,035/$ on the unofficial market as against 1,010/$ on Tuesday, according to abokiFX, a platform that tracks parallel market rates.
The official rate stood at N776.80/$, down 1.43 percent compared to the previous day, data from FMDQ Group show.
Markets Reporters had earlier this week reported that the naira fell to another record low of 1,010 per dollar Tuesday on the unofficial market from 1,008/$ on Monday. That followed several days of appreciation against the greenback last week, with the naira closing at 1,000/$ on Friday.
Yemi Cardoso, who was confirmed by the Senate more than two weeks ago as the new head of the Central Bank of Nigeria following his appointment on Sept. 15, has yet to disclose what would be done to clear the foreign exchange backlog that is dampening investor confidence in the economy.
“Capital reallocation from Nigeria’s economy may continue to impact foreign investment flows in the short to medium term. Investors may adopt a wait and see approach due to lack of forward guidance on Foreign Exchange policy,” PwC Nigeria said in a report last week.
