Foreign exchange transaction is enjoying boom on the black market as it becomes the alternative source, following the Central Bank of Nigeria (CBN) posture on interbank transaction.
A news agency said the CBN sold $202 million at N146.02 to $1 at its bi-weekly foreign exchange auction on Monday, while naira slipped further on the parallel black market.
The forex supplied by the CBN fell short of the $385 million demanded, traders said on Tuesday, a situation which pushed naira to N170 on the black market from N167 to $1 at the end of last week.
The apex bank had failed to meet the demand at its foreign exchange auctions. It sold $235 million at its last auction on Wednesday, below demand of $293 million.
It will be recalled that the CBN has forbidden commercial banks from reselling currency bought at its auction or any other sources on the interbank market.