The Nigerian Naira plunged to N493 against the United States Dollar on Wednesday at the parallel market, popularly known as the black market, following the Central Bank of Nigeria‘s decision to devalue the local currency again.

The apex bank had replaced the official exchange rate of N379/$1 with NAFEX rate of over N410/$1 to further unify the nation’s foreign exchange rates and ease the pressure on dwindling foreign reserves.

While criticism trailed the decision given the current situation in the country, persistent dollar scarcity occasioned by weak foreign revenue, speculators and hoarders that operates at the nation’s black market section of the forex plunged the Naira against global counterparts on Wednesday.

Against the British Pound, the Naira traded at N688 and N592 to a single Euro.

At the NAFEX window, the local currency exchanged at N411.50 to a United States Dollar. Investors traded $471.85 million during the trading hours of Wednesday.

Weak foreign revenue generation amid fragile growth and escalating inflation rate continues to hurt the Nigerian Naira and the central bank’s ability to defend the embattled local currency.

According to the monetary policy committee, even though “the economy had successfully exited the recession, the recovery was very fragile given that the GDP of 0.51 per cent was still far below population growth rate. Committee, therefore, was of the view that, there is a strong need for the Monetary Authorities to consolidate on all administrative measures taken not only to rein in inflation, but also on the actions so far taken to grow output.”

The committee left interest unchanged to stimulate growth and said the measures put in place by the central bank will help ease rising inflation as seen in April.