There were clear indications of panic and consternation among currency traders in Lagos on Wednesday as the Naira depreciated thrice in six hours at the parallel market, the News Agency of Nigeria reports.
The curious-stricken traders tried to unravel the rationale behind the sudden depreciation of the Naira after it had appreciated for about four weeks.
The local currency exchanged at N467 to the Dollar as at 4:30 p.m. after it traded for N455 and N460 in a couple of hours on Wednesday while the Pound Sterling and Euro closed at N560 and N505, respectively.
The Nigerian currency, after weeks of sustained appreciation, stabilised at N455 to a dollar prior to its depreciation on Wednesday.
While at the Bureau De Change window, the Naira was sold at N385 to a Dollar – CBN controlled rate – while the Pound Sterling and the Euro closed at N553 and N500, respectively.
The official interbank market was not isolated from the depreciation fever as the local currency lost N1.78 to close at N306.78, from N305 it posted previously.
Traders at the market still could not offer sufficient reason for the performance of the Naira at the parallel market.
However, the traders are optimistic that liquidity challenge would ease off by tomorrow (Thursday) after BDCs would have bought Forex from Travelex in Lagos.