The Nigerian naira weakened in the parallel market after the central bank devalued the official exchange rate by 7.6%, replacing it with the managed float figure used for investors and exporters.

The local unit sold for 495 naira per dollar on the street on Thursday against 486 on Monday, according to abokifx.com, a website that collects parallel rates in Lagos. The naira opened at N411.08 on the investors and exporters window, otherwise known as Nafex.

The unregulated move in the naira exchange rate is driven by speculation based on the central bank’s migration to Nafex, said Ayodeji Ebo, head of retail investments at Chapel Hill Denham in Lagos.

Governor Godwin Emefiele confirmed on Tuesday that the central bank no longer trades the official rate of 379, but has instead adopted the Nafex for government transactions. He will continue to monitor and intervene in the market to keep the value of the local currency within a range it deems appropriate, he said.

Investors are still concerned about the spread between the investor rate and the parallel market.

READ: Nigeria Devalues Naira on the migration to a single exchange rate

“Once there is stability at the I&E window and people see that there are no major moves and demand has not increased, then we will start to see some form of convergence. Ebo said.