The Naira, on Wednesday, October 26, shed N5 exchanging at N460 against the dollar at the parallel market due to the reduced dollar supply in the money market.
The local currency had traded at N455 against the U.S dollar on Tuesday, October 25, same rate at which it exchanged for on Monday.
The naira had been relatively stable at the parallel market following the directive of the Central Bank of Nigeria, CBN, asking 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.
Meanwhile, at the interbank market, the spot rate of the naira closed at N306.78 to the dollar on Wednesday, buoyed by the apex bank interventions.
