The naira on Monday plunged to 264 against the United States dollar at the interbank market, in spite of the decision by the Central Bank of Nigeria (CBN) to scrap its fixed exchange rate and allow market forces to determine the value of the local currency.
It was gathered that at the commencement of the new foreign exchange regime, the naira started at N253 to a dollar.
Bloomberg reports that at about 11:02am on Monday, the naira had moved to 264 to the dollar at the inter-bank market, with dealers expressing extreme caution in proceeding with transactions.
Minutes later, the naira came to 260, which was the initial predicted position the CBN-FMDQ OTC guideline was planned to work with.
Several analysts have predicted that the naira may settle around 250, compared with 350 to the greenback on the black market.