As Nigerians rushed to buy dollars one week after the Central Bank said it would redesign higher-value notes, the naira saw a further decline against the American currency on the widely used illegal market.
Currency traders in the unauthorized parallel market offered naira at rates between 830 to 850 per dollar on Wednesday in Lagos. The record low level further widens the spread from the official exchange rate, which also weakened to an unprecedented 443.11 to the dollar in Lagos, to the largest-ever gap of more than 88%.
Demand for dollars in Africa’s largest economy has surged since the Central Bank announced a plan to replace 200-, 500- and 1,000-naira notes from mid-December. The old bills will cease to be legal tender at the end of January.
Source: bnnbloomberg.ca