The Central Bank of Nigeria (CBN) says it is worried about boosting dollar supply on the currency market and not valuation of the Naira. The apex bank’s Director of Monetary Policy, Hassan Mahmud, stated this during a virtual investor conference on Tuesday.

This statement was coming after the Naira hit a record low of N532/$1 on the unofficial or black market on Monday, with dollars hard to come by following the CBN’s recent actions to channel demand from the unofficial market, where the Naira is trading at much lower levels.

On the other hand, the Naira, yesterday traded at 411 per dollar on the official spot market, in the range of N407 to N412 where it has been since June 2021.

Analysts had begun to express concerns that this situation could affect the economy, adding that this could send the wrong signal to investors.

However, Mahmud said the apex bank was worried about the supply side of FX and the confidence in the system while adding that the level of the Naira is expected to adjust based on demand. According to him, market failures had made the CBN adopt a managed float regime.