Following the decision of the Central Bank of Nigeria to allow market forces determine the value of the naira, the interbank market on Monday pushed the Nigerian currency to as high as 264 against the United States dollar.
Despite opening at N253 to the dollar at the start of the new foreign exchange regime, 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.
A few minutes later, the naira came to 260, which was the initial predicted position the CBN-FMDQ OTC guideline was planned to work with.
As at 2pm, the local currency was trading at the interbank market at 260.50 to a dollar, while the daily average holds at 247.
Meanwhile, the interbank trading which was scheduled to end at 2pm, was extended to 4pm in order to ensure some stability in the market before the close of the business day.