Naira hits record low at 409 to dollar

The Naira was quoted at an all-time low of 409 per dollar on the parallel market on Thursday, compared with 402 per dollar at close on the previous day as dollar shortage bite harder in Africa's top crude producer.

Traders said the local currency fell due to increase demand for the dollar which they are unable to match with weak supply and the impact of the suspension of some commercial lenders from forex transaction by the central bank on Tuesday.

The central bank suspended nine banks from forex transactions on Tuesday for failing to remit money owed to the government, but re-admitted one of them on Thursday after it remitted the fund.

'The suspension of some banks from transaction in the forex market has really increased pressure on the market,' said Aminu Gwadabe, president of Bureaux de change association.

He said most of Bureaux de change have their accounts with the banks suspended by the central bank and this has reduced access to forex causing the naira to tumble.