Naira, yesterday, suffered its most steep depreciation in the inter-bank market since the new foreign exchange market commenced, trading at N365.25 per dollar against N314.14, almost 14 per cent drop in one day.
Parallel market rate hovered around N395/ USD1, indicating that the huge gap is now narrowing. The steepest single day depreciation before yesterday was recorded shortly after the dropping of Central Bank of Nigeria’s remote rate control which spiked the exchange rate from N281.8 to about N305.5 last month, just 8.4 percent depreciation.
Earlier this month also, another sharp depreciation was recorded when the rate hit N332.1/$1 from N315.4/ $1, which translated to just about 5.02 percent depreciation.
Traders attributed yesterday’s development to a sustained discomfort with continued scarcity of foreign exchange supply from independent sources, a situation which had forced the apex bank to continue its intervention almost on a daily basis since this month.