• Naira tumbles to N400 per dollar the parallel market.
  • At the official market side, it continues to exchange at N306 to the dollar, while the I&E window closes at N374.
  • Despite insinuations about devaluation on the street, CBN says market fundamentals do not support such policy at this time. 

Panic continues to grip the forex market as coronavirus bite hard on the global economy, with Nigerian naira shedding N40 to trade at N400/dollar on the street.

On Wednesday, March 11, 2020, the local currency dropped to N370 and tumbled by the close of business on Thursday evening.

Nigeria's naira hits record low of 412 to dollar on parallel market - traders
Nigeria's naira hits record low of 412 to dollar on parallel market - traders

On the streets in Lagos and Abuja, naira exchange hands for N400, N405, and far as N410 due to speculation over the devaluation of the currency.

At the official market side, it continues to exchange at N306 to the dollar while the I&E window closed at N374.

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The Central Bank Of Nigeria (CBN) had vowed to keep the rate stable by using all monetary instruments to tame depreciation. This argument, analysts believe may be shortchanged due to dwindling oil prices and depleting foreign reserves.

On Thursday, the apex bank dismissed insinuation about devaluation, saying market fundamentals do not support such policy at this time.

Oil price is below $40 per barrel and foreign reserves staggering at $36 billion.

The Nigerian government had set up a committee to look into the impact of coronavirus on the economy and how it can adjust the 2020 budget in line with current global realities.