The naira closed at 370 to the United States dollar on Friday, as dollar supply from the Central Bank of Nigeria continued to decline.
The Nigerian currency, which used to stand between 360 and 365 to the greenback, has been trading between 367/dollar and 370/dollar in recent weeks.
The naira was quoted at 366.79 per dollar for investors, and traded at around 305.90/dollar on the official market window.
Recall that money market rates had moderated on Thursday after the Federal Government disbursed N224.54bn ($715.10m) in budget allocations to the three tiers of government, boosting liquidity, Reuters reported.
The CBN also repaid around N95.7bn in matured treasury bills to boost liquidity, traders said.
Subsequently, the central bank sold around N26.90bn at an open market treasury auction on Friday to soak up naira liquidity.
The Association of Bureau De Change Operators said the CBN needed to converge the exchange rate in order to stabilise the naira.