The Nigerian Naira fell to a new low on the black market as it fell to N395 to the dollar on Monday.
This comes on the heels of an announcement by the Central Bank of Nigeria (CBN), that it had adjusted the exchange rate for the first time in four years.
The Naira has been on a high of N370 for several weeks as the demand for dollars increased exponentially in the last few weeks opening up the black market.
According to a report by the financial watch, this was also bolstered by a CBN directive to Bureau De Change operators in the country not to sell the US dollar above N380.
Other sources corroborated the new black marker prices as experts say this is a subtle way of devaluating the Nigerian Naira by 15% as the official exchange rate jumped from N307 to N360.
According to a report by Bloomberg, the effects of the coronavirus pandemic on the global market pushed Nigeria to not only devalue the Naira, the apex bank also altered the rate for foreign portfolio investors from N366 to N380.
CBN wrote to BDC operators on Monday.
Despite the negative speculations however, the apex bank said it has enough foreign currency in its reserves to meet legitimate FX demands.
It said further that it was working towards proper assessment of the impact of the Covid-19 pandemic in order to develop an appropriate fiscal response.
A statement released by CBN to debunk the speculations read:
“The CBN wishes to note with displeasure, the rumours and speculative activities of unscrupulous players in the foreign exchange market, borne out of the impression that the CBN is on the verge of devaluing the naira and triggering panic in the FX market”