The Naira has crashed at the parallel market to N502 per dollar after the Central Bank of Nigeria adopted the Nigeria Autonomous Foreign Exchange ( NAFEX) rate.
The CBN devalued the naira from the official rate of N379 to N410, which is close to the Investors’ & Exporters’ (NAFEX) Windows rate, where investors and exporters trade.
According to Data from Aboki FX, the impact has caused the naira to fall to N715 per pound, down from around N670 in early May.
The Euro has also surged to N610 from the N580 it traded in May.
The naira has been devalued four times since the outbreak of the Covid-19 pandemic, including the most recent devaluation in 2021.
The bank had devalued the naira from N305 per dollar to N360/ dollar and N379 per dollar.
Nigeria has been subjected to significant foreign exchange pressure as a result of the drop in crude oil prices in 2020 and the months-long lockdown.
The CBN said the country had a foreign exchange backlog of over $2bn with a lot of foreign portfolio investors trapped in the Nigerian economy.