Thurday saw a record low of the Nigerian Naira of N1,600/$1 as a result of shortages of dollars on the parallel market or black market.
Strong demand for dollars from speculators and those travelling for business, pleasure, education, and health was the main cause of this devaluation.
In comparison to the N1,570/$1 that some dealers were offering on Wednesday, the Nigerian naira lost 1.26% of its value against the United States dollar.
On the black market, the naira dropped 11.95% against the N1,400/$1.
On Thursday, though, the naira appreciated by 0.3% to N1,498/$1 on the official foreign exchange market.
In Tuesday’s sale of roughly $86 million, the Central Bank of Nigeria (CBN) sold slightly more than $100 million to banks that did not receive dollars.
The difference between the official and parallel markets appears to be growing once more, as it increased to 6% on Thursday.
In an effort to increase the amount of dollars available in the nation, CBN declared on July 10, 2023, that it would be lifting the long-standing ban on diaspora remittance payouts in Nigerian naira.
With this ruling, a substantial change in policy has been made, allowing banks and International Money Transfer Operators (IMTOs) to pay beneficiaries in local currency.
The move by the Central Bank of Nigeria is anticipated to boost the nation’s foreign exchange reserves and spur more remittance inflows.
