Naira Hits New Low as Dollar Shortage Persists

Nigeria's naira tumbled more than five percent to another record low against the dollar on the black market on Thursday, as a dollar shortage persisted.

Low prices for oil, the country's top foreign currency earner, have drained the country's forex reserves, which hit an 11-year-low of $24.61 billion on Tuesday.

"Dollar is very scarce in the market right now because many people don't know how low it will fall in the near term, so people are holding on to their hard currencies in order to watch the direction of the market," one dealer said.

Traders from neighbouring countries and some importers had also been moving in recently, mopping up dollars and putting pressure on the naira in a possible speculative bid, Aminu Gwadabe, president of the association of bureau de change operators told Reuters.