Nigeria is allowing the naira to weaken in view of a possible uniform exchange rate. The currency hit a record high against the dollar in the official market on Friday.

According to traders, the naira situation could be a move by the central bank to unify multiple exchange rates. After trading in a range of 380 and 381 to the dollar since July last year, the naira hit a record high of 419.75 against the dollar on Friday. It then finished at 411.25, the last closing rate for the naira in the over-the-counter spot market.

On Reuters, a forex trader said “what the central bank is saying is that the spot rate (over the counter) will be the official rate because that is where the largest volumes are traded”. Central Bank Governor Godwin Emefiele said in February that the currency was trading at 410 naira in the official market, as the government uses this rate for its business and tries to increase sales revenue crude oil, its main export.