The naira continued its decline against the dollar at the Investors and Exporters’ (I&E) window, Nigeria’s official foreign exchange (FX) mar- ket, yesterday as it closed at a new record low of N469.50 per dollar, compared with N466.79/$1 on Wednesday, data from FMDQ shows.
According to traders, increased demand for the dollar by end users for importation and travel allowances is responsible for the naira’s recent weakness at the I&E window. The CBN has been adjusting the naira gradually on the official market to avoid a large-scale devaluation.
The apex bank sold the dollar at N645 at its Friday auction, fuelling speculation that a devaluation, which could weaken the official exchange rate closer to the auction level was imminent.
President Bola Tinubu in his inaugural speech, last week, said his administration would not support a multiple exchange rates system. Last Thursday, the CBN denied devaluing the naira, following media reports of a big fall in the local currency after Tinubu met CBN Governor, Mr. Godwin Emefiele.