The Nigerian naira for five-year settlement was quoted at 578.37 to the U.S. dollar on Wednesday, just off a record low of 584.11 last week, as a shortage of dollars piled on pressure, while the central bank seeks to bolster the Nigerian currency.

The naira has been hitting new lows on the black and over-the-counter spot markets since March after the central bank adjusted its official rate, implying a 15% devaluation.

Meanwhile, a crash in oil prices in April, triggered by the coronavirus pandemic, worsened shortages of dollars in the oil-producing nation.

The bank strengthened the naira on the futures market for May 2025 settlement by six naira, traders said on Wednesday.

Introduced in February, 5-year naira futures traded above 550 last month on the derivatives market as dollars ran short on the spot market.

Bankers say the central bank has been intervening in liquidity on the interbank market around the time when the bank plans currency auctions. Reuters

Picture: Nigeria Finance Minister, Zainab Ahmed