Central Bank of Nigeria (CBN) took a step nearer to outright devaluation of the Naira by providing 23 commercial banks with a combined $370.8 million.

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CBN offered forex at forward exchange rates up to 15 percent weaker than the official rate.

On Monday, the CBN effectively devalued the local currency for private individuals, who account for about 20 percent of total foreign exchange demand in the country.

On Tuesday, it said it sold dollars using one and two-month forward exchange rates to commercial banks whose bids ranged from N315 to N360 per dollar, up to 15 percent weaker than the official rate of N305 that commercial importers typically use.

Forward exchange rates are rates at which banks agree to exchange one currency for another at a future date.

Selling the dollars at new one and two-month forward rates may set expectations for the CBN to allow the Naira  trade at a weaker level in the future, after the government had kept it at an artificially strong value according to critics.

Banks bought $216.5 million in one-month forwards, and $154.3 million in two-month forwards, said the apex bank.

Nigeria’s dollar supply has been throttled by foreign currency restraints and low exports of crude oil. The government devalued the Naira last June but still kept it at just over N300 to the dollar – as much as 40 percent stronger than black market rates in the following months.