Nigerian Naira Hits Record Lows Against US Dollar Amid Foreign Currency Shortages
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Nigeria's naira has fallen to record lows against the dollar, nearing 1,000 naira per dollar on the unofficial market.
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The central bank has a large backlog of unmet demand for foreign currency, forcing businesses to the black market.
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Nigeria's foreign reserves have declined in recent years due to lower oil exports and investment.
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Banks are owed billions in unsettled foreign currency transactions, constraining trade financing.
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Further devaluation of the naira is likely given its continued weakness on parallel markets, stoking inflation.