The highest exchange rate during the day’s trading was a rate of ₦791 to the dollar.
At the Investors and Exporters window on Wednesday, the Naira lost value against the dollar and exchanged for ₦664.04 dollars.
According to the News Agency of Nigeria (NAN), the value of the local currency against the dollar on Tuesday decreased by 47.78 percent.
The Central Bank of Nigeria (CBN) instructed banks to remove the rate cap on the naira at the Investors and Exporters’ Window, which led to the depreciation.
The directive would permit the nation’s currency to freely fluctuate in relation to the dollar and other global currencies. On Wednesday, the open indicative rate was ₦473.83 to the US dollar.
The highest exchange rate recorded during the day’s trading was a rate of ₦791 to the dollar before it settled at ₦664.04.
During the course of the day’s trading, the naira was sold for as little as $461 per dollar.
On Wednesday, the official Investors and Exporters window saw transactions totaling $193.33 million.
In the meantime, Director of the University of Lagos’ Centre for Economic Policy Analysis and Research, Prof. Ndubisi Nwokoma, deemed the CBN’s directive for a free float of the naira to be a positive development.
“The CBN decision is a good development, hoping that unnecessary arbitrage (round tripping) would be eliminated from the market.
“We expect that the foreign exchange rate will trend downwards when foreign capital inflow increases, following from these.
“The negative side is that many assets or foreign sector related to naira prices, like external debt, among others, will be adjusted upwards with some minimal effects on inflation.
“Inflationary effects may not be much, given that many economic agents had been sourcing for their foreign exchange at the parallel market before now,” he said.