Naira has plunged further against the United States’ dollar on the black market on Tuesday as forex scarcity persists.
The local currency depreciated to N470 to $1, its lowest in over three years. This was N5 lower than the N465 it exchanged on Monday.
The naira depreciated to N460 $1 almost three weeks ago and has remained within that range ever since.
Some financial experts attributed this to the nation’s weak foreign revenue generation and economic uncertainties amid the global coronavirus pandemic.
They said while the Central Bank of Nigeria put measures in place to arrest the situation and support the nation’s currency, low oil prices and weak foreign revenue generation had continued to dictate investors’ sentiment in the Nigerian market.
According to them, this lack of confidence in policy direction has resulted in low capital importation and surge in capital flight, especially those looking to move their funds to a safe haven.
Against the British pound, the naira slid to N570, down from N565 on Monday and Friday.
This decline continues against the European single currency as the local currency dropped by N5 from N510 it traded on Monday to N515 on Tuesday on the black market.
However, investors’ daily turnover declined from $36.28m recorded on Monday to $12.91m on Tuesday.
