The Nigerian naira fell further on Monday, reaching an all-time low of N670 versus the US dollar on different currency trading platforms.
In the meanwhile, the naira is trading at N674 per pound. However, as parallel market values continue to plummet, the official value remains at N430 per dollar.
The ongoing naira depreciation comes a year after the Central Bank of Nigeria (CBN) prohibited the sale of foreign currency to bureau de change operators (BDC).
The central bank had prohibited the selling of foreign currency to BDC operators, alleging the illicit sale of foreign currency above the market they were authorised to service.
Prior to the prohibition, BDC operators had long been a substantial black market, giving exchange rate support to a huge number of customers who were unable to get foreign currency directly from the CBN.
The exchange rate was about N501 to a dollar when CBN Governor Godwin Emefiele prohibited the selling of currency to BDC; but, a year later, the value of the naira plunged to N670 to a dollar.
In an effort to further restrict the flow of currency on the parallel market, the central bank warned last week to arrest and punish Nigerians who used naira to acquire dollars.
“For those taking money from banks to buy dollars, it is illegal to do so. If the security agencies hold you, you will know the implication of that,” Mr Emefiele said at a Monetary Policy Committee (MPC) meeting in Lagos.