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The official currency of Nigeria, the #Naira, suffered further weakening on Friday July 10, 2015 when it traded for N240 against the United States Dollars in the parallel (black) market.
The demand of individuals to convert their naira to dollars was triggered by the latest bailout funds sanctioned by the Federal Allocation Account committee to the three tiers of government.
“There is a lot of demand with the recent injection of cash by the government. Part of the funds is being converted to dollars,” Gwadabe told Reuters.
Before the liquidity injection, the naira has weakened steadily on the black market.
The central bank two weeks ago tightened access to dollars on the official interbank market, which analysts say risked diverting demand to the unofficial black market, worsening investor perceptions about policy.
On the interbank market, the naira traded at 199.45 at 1037 GMT on Thursday, near central bank’s pegged rate of 196.95.
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