PHOTO
image used for illustrative purposes. A bureau de change operator counts U.S. currency notes in Abuja, March 12, 2015. In Nigeria, holding naira has become increasingly unpopular as it has lost its value. Basic everyday goods can still be paid for in the local currency but many items are scarce and Nigerians need U.S. dollars for imports such as drugs or fabrics sold by small-time traders, to send money to relatives abroad or to purchase western clothes that are important status symbols. Faced with a massive drop in oil revenues and declining reserves, Nigeria's central bank devalued the naira and then imposed rules restricting access to dollars to all but importing companies to curb what it termed "speculation". Picture taken March 12, 2015. REUTERS/Afolabi Sotunde
Nigeria's naira fell to a record low on the black market on Friday, driven by seasonal demand for dollars from people paying for expenses abroad.
The naira was quoted at 895 to the U.S. dollar on abokiFx, a firm that publishes online black market exchange rates for the naira, compared with 875 on Thursday.
The currency of Africa's biggest economy was trading at 785 naira to the dollar on Friday on the official spot market, where it has been swinging widely intraday since the central bank loosened trading restrictions in June.
Under President Bola Tinubu, the central bank is moving away from a much-criticised system of multiple exchange rates used to keep the naira artificially strong, and towards a unified exchange rate.
Olawale Edun, who is likely to be Nigeria's next finance minister, said this week the weaker black market rate was not backed up by economic fundamentals and that a more appropriate naira exchange rate would be around 700 to the dollar.
(Reporting by Elisha Bala-Gbogbo, Editing by Alexander Winning and Angus MacSwan)
