The naira crashed to a new record low against the dollar on the official market on Tuesday, falling to over N1000 on the unofficial parallel market.
The Nigerian currency fell as low as N1,248 to the dollar, during mid-day trading, LSEG data showed after it opened at N927 on Tuesday. It later recovered to N845.
Nigeria’s Central Bank governor Olayemi Cardoso has said he would allow market forces to determine exchange rates while setting clear, transparent and harmonised rules governing market operations.
The comments and chronic dollar shortages on the official market have prompted the naira’s official exchange rate to drift towards the parallel market level.
The currency sold at around N1,225 on the parallel market on Tuesday, while it was quoted at 1,002.50 naira on the one-month non-deliverable forwards market.
Chronicle NG reports that the CBN alerted commercial banks and citizens on the influx of fake notes in circulation.
