Naira falls by one percent against US dollar at black market

With uncertaintity gradually mounting over oil prices, Nigeria's currency, naira, was at its lowest rate, falling one percent against the United States dollar since August 2017, on the black market.

Now at 370 to a USD, black market outlets are said to be hoarding the US currency as global oil prices dropped more than 20 per cent this month, raising worries that the Central Bank of Nigeria reserves may not be able enough to defend the currency against any further drop in oil prices as foreign investors have been pulling money out of Nigerian assets.

"There's no new investment coming in and oil prices have been dropping, so investors are watching while some are exiting," one trader to PunchNG.

Data released by the CBN on Thursday showed that the nation's foreign reserves is down by 12.3 percent, going from the peak of $47.8bn reached in June to 41.9bn as of November 27.

The CBN spent $2.2 billion in October to prop up the  and keep the naira statble, but foreign investors are leaving Nigeria's market for favourable ones in developed economies with rising interest rates.

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