The Nigerian currency, Naira, on Monday made a leap by 4.4 per cent against the United States dollar at the parallel market, gaining N16 from its Friday rate.
The local currency, which has experienced umpteen struggles stood at N345 to a dollar from N361 it traded on Friday.
This is just as the local currency exchanged at N385 and N380 for Pounds Sterling and the Euro, respectively, at the Monday’s trading.
While the official Central Bank of Nigeria (CBN) rate remained at N197 to the dollar.
Speaking to the News Agency of Nigeria (NAN), some traders said that the money market had started recovering from the shock of Wednesday’s increase in the pump price of petrol from N86.50 to N145 per litre, which saw a “free fall’’ of the naira at the market.
Meanwhile, reports had emerged that the parallel market exchange rate rose to N360 per dollar on the average on Friday following rumours that the CBN had officially devalued the Naira to N290 per dollar.
The apex bank, however debunked this rumour, leading to appreciation of the Naira on Saturday to N350 per dollar.
According to President, Association of Bureaux De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, the volatility was driven by speculation.
“When people hear about any government policy they make interpretations and take position. The report by Sahara Reporters triggered the depreciation on Friday but the denial by CBN calmed the market. Today there is a report that the CBN will on May 24 make a pronouncement on its foreign exchange policy and this caused a sudden lull in trading hence the appreciation in the later part of today.”