The naira has continued to flounder in the gale of depreciation in value, trading at N494 to a dollar compared to the N268 it traded to a single dollar on December 25, 2015 at the parallel market.
This is coming barely days after reports emerged that the local currency may further succumb to the 500 mark to the dollar at the parallel market as from next week as the greenback scarcity persists.
On Friday, the local currency traded at 305 per dollar at the official interbank market while the euro and the British pound exchanged for 330 and 388 respectively.
During a chat with TheCable on Sunday, a dealer in Lagos said the naira appreciated on Friday after the CBN sold dollars to commercial banks via a special auction.
The dealer further stated that the pressure around the festivities pushed the naira to 498 against the dollar on Sunday.
“On Friday morning, we sold for N495 to the dollar, but when the CBN sold to banks, the naira appreciated to 485 per dollar,” Isiaka Ahmed, a BDC operator, said on Sunday.
“Today, some traders have sold at 498, 497, but now, we are selling at 494 and buying 490.”
There are also strong indications that the CBN will be wielding the big stick on the black market.
The Minister of Finance, Kemi Adeosun, had said the CBN has been mandated to scrap the damaging market.
The Apex Bank “has been directed to do this and CBN has promised to do something by putting a system in place to eliminate the black market because it’s damaging the economy”, she told a conference.
It would be recalled, the naira traded between 183 and 185 to the dollar on Christmas Day in 2014, weeks after it was devalued by the CBN under the Goodluck Jonathan administration.