Local currencies resumed their depreciation against USD. Thus, Sweden’s central bank raised its key policy rate by a quarter percentage point to 4.00% as expected earlier today and borrowed €20 bn from its rainy day fund to support the weakening króna and said it might need to do more to bring inflation back to its 2% target.

Meanwhile, the Nigerian naira fell to a record low of 980 on the black market on Wednesday, according to abokiFx, a company that publishes the online black market exchange rate for the Nigerian naira. The currency was quoted at 980 naira per dollar, compared with 965 naira on Tuesday, September 19.

The naira's weakness has widened the gap between the black market and the official market, where restrictions on trading in the currency were lifted in June. The pressure on the naira also highlights the challenges the central bank faces in increasing dollar liquidity to stabilize the currency.

The newly nominated central bank governor, Olayemi Cardoso, will have to address this challenge as one of his top priorities. The current free fall of the naira is believed to be mostly driven by speculation, as the black market premium has reached 23.3%. This speculation is causing the naira to further lose its ground as a store of value, with individuals turning to the dollar and Bitcoin instead.