By InvestAdvocate

Lagos (INVESTADVOCATE)-The Nigerian naira on Thursday slumped 20.69 percent on Thursday following gains recorded earlier in the week reversing to trade N350 to a dollar, according to Cordros daily market update.

The update affirmed that as at the time of its report, the naira in the interbank market –had appreciated against one (1) of the three (3) currencies it tracked.

According to the Cordros update, the naira strengthened by 0.03 percent compared to the euro to trade at N219.16 while the local currency depreciated by 0.30 percent against the pounds sterling and traded at N278.02; while it was flat compared to the greenback to trade at N199.05.

The report noted that as volatility continued to dominate the parallel market, the local currency weakened by 11.11 percent and 2.86 percent respectively to trade at N450.00 and N360.00, the Cordros report said.

Reports say the Nigerian naira is expected to pare some of its recent gains next week as traders seek to stock up on dollars.

According to Reuter, the naira is expected to weaken a little on the parallel market as some traders are seen taking advantage of a recent rally to mop up dollar liquidity.

The report further affirmed the naira rate remains flat around the peg rate N197.50 on the official interbank market. The Central Bank of Nigeria (CBN) restrictions were introduced late last year to defend a currency peg which have restricted access to dollars.

The Nigerian local currency rallied in the week to around N300 a dollar after President Muhammadu Buhari on Saturday rejected the idea of devaluing the naira, despite mounting pressure from an economic crisis caused by a sharp fall in the price of oil, Nigeria’s dominant export.

Reuters quoted Aminu Gwadabe, President, Association of Bureau De Change Operators of Nigeria (ABCON) as saying “hoarding and speculative activities have returned to the market, pushing down the naira value again.”