By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)-The naira on Friday hit a new low on the black market as it traded N240 to a dollar, according to a Reuters report compared to N235 to the greenback recorded the previous session.

This is coming on the heels of a government liquidity injection to help cash-strapped states offset a funding crisis hit the currency, the report quoted dealers.

With the new record low of N240 to a dollar on the parallel market, the Nigerian local currency dipped further 2.1 percent as persistent dollar shortages continued, Reuters quoted two (2) traders.

According to the report Aminu Gwadabe, president of Association of Bureau de Change of Nigeria (ABCON) said he saw an increase in demand on Friday as individuals tried to convert their naira to dollars.

“There is a lot of demand with the recent injection of cash by the government. Part of the funds is being converted to dollars,” Gwadabe told Reuters.

Central Bank of Nigeria (CBN) two (2) weeks ago tightened access to dollars on the official interbank market, which analysts say risked diverting demand to the unofficial black market, worsening investor perceptions about policy.

The CBN in its usual email statement affirmed that at the naira’s interbank closing rate was N196.95 compared to the greenback.

Nigeria’s apex bank on Thursday disclosed it will not focus on the naira reaching new record lows in the black market saying it’s insignificant in the determination of naira exchange rate.

Ibrahim Muazu, spokesman for the CBN said: “There is need to deemphasize the parallel market. How can less than one percent be determinant of the rate? Most of those going that way are those that don’t want to be documented.”