iDeemlawfulThe Nigerian Naira has reached an unprecedented low against the United States dollar in both official and unofficial markets.
On Tuesday, naira has traded at N1,482.57 per $1 at the official market and N1,491.00 per $1 at the parallel market, marking a 10% depreciation from the previous session.
This decline is attributed to the Central Bank of Nigeria’s move to clear dollar backlogs owed to foreign airlines, addressing concerns of inadequate dollar liquidity.
The CBN injected an additional $64.44 million into the aviation sector, bringing the total disbursed to $136.7 million.
The spread between official and unofficial rates now stands at N8.4, prompting CBN warnings against market manipulation and emphasizing commitment to a transparent market.
In a circular published Monday, the CBN raised concerns over traders reporting “inaccurate and misleading information,” including under-reporting of transaction pricing, which it claimed affects the exchange rate.
“Deliberate attempts to create price distortions by reporting false transaction details amounts to market manipulation which will not be tolerated and will henceforth face sanctions,” the CBN said.
The bank also noted that it is committed to a well-functioning and transparent market that functions on a willing buyer, willing seller basis, with prices quoted and displayed transparently.
