By Babajide Komolafe, Peter Egwuatu & Jonah Nwokpoku

The interbank foreign exchange market came to a temporary halt yesterday, as the naira depreciated to N200 per dollar in the market, just as investors lost N1.759 trillion in the Nigerian stock market in less than two months.

Also, the nation’s external reserve dropped to $33.52 billion on Monday, representing its lowest level in several years.

Data published by the Central Bank of Nigeria, CBN, on its website showed that the external reserve fell by $760 million from January 31 to February 9.

Meanwhile, cost of borrowing in the interbank money market for the first time reached 100 percent, before closing at 73 percent as scarcity of funds intensified in the market.

Investors lost N1.759 trillion as market capitali-zation dropped by 15.3 percent from N11.477 trillion in December 2014 to close yesterday at N9.618 trillion.

Meanwhile, in what represents the biggest depreciation of the naira in one day in the interbank foreign exchange market, the naira depreciated by N4.49 as the interbank exchange rate rose from N196.61 per dollar on Monday to N200.10 yesterday.

Similarly, the naira depreciated by N4 at the parallel market, with its exchange rate closing at N209 yesterday, from N205 the previous day.

Foreign exchange dealers confirmed to Vanguard that trading stopped for some minutes when the interbank rate reached N200 per dollar.

It was gathered that CBN tried to halt the depreciation by intervening in the interbank market through two-way quote.

The intervention, however, did not have lasting effect as the interbank exchange rate climbed beyond the N200.