LAGOS Feb 20 Nigeria naira hit a fresh low of
520 on the black market on Monday, as retail currency traders
tried to digest a new central bank decision to sell dollars to
retail users through commercial lenders, one retail trader said.
The central bank plans to sell $1 million weekly to each of
the country's 21 commercial lenders at a rate of 375 naira to
clear a backlog of demand for retail users and try to narrow the
premium between the official and black market rates, traders
said on Monday.
On Friday, the naira was quoted at 516 on the black market.
On the official market, the naira was quoted at 305.50
Retail currency users buy dollars from licensed bureaux de
change (BDC). However, due to the central bank's inability to
meet dollar demand, BDCs have tended to source dollars from
private sources and resell at a much higher margin, fuelling the
(Reporting by Chijioke Ohuocha; Editing by Alison Williams)