The naira fell to N460 to the dollar on the parallel market wednesday,
compared with the N455 to the dollar the previous day, due to reduced
dollar supply in the market.
But on the interbank FX market, the spot
rate of the naira closed at N306.78 to the dollar yesterday, supported
by central bank interventions.
The naira had been relatively stable on
the black market after the bank asked international money transfer firms
to sell dollars directly to bureau de change operators to boost
liquidity and narrow the gulf with the official market.
The directive was initially effective, traders said, but its impact has been limited due to few dollars coming into Nigeria.
“What we get from Travelex is not sufficient,” one trader told Reuters, referring to demand in the market.
International money transfer firm,
Travelex, sells around $15,000 to 1,000 retail currency outlets weekly,
but the amount is a fraction of what is required to cover demand from
individuals and small businesses.
Dollar shortages have caused many firms
to halt operations and lay off workers, compounding an economic crisis
exacerbated by the fall in global prices for oil, which accounts for 70
percent of Nigeria’s budget revenue.
The central bank has struggled to support the local currency as its dollar reserves have continued to fall.
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