The Naira traded at a discount of over 15% against the dollar year-on-year at the official Nigerian Autonomous Foreign Exchange (NAFEX).
However, experts described the dip as an indication that the currency is still in crisis which is triggered by rising imports and speculative trading.
Nigerians have therefore been urged to prepare for more volatility this year.
Officially, the currency started trading yesterday at N426.25 per dollar and closed at N422.6 per dollar.
In comparison to the parallel market, the naira continues to trade sideways against the dollar amid tight liquidity.
However, a dollar is equal to N565 in the Lagos markets, operators predict that the exchange rate could break down soon as activities resume fully for the year and Nigerians in the diaspora who came home for the festive period begin to travel back.
Recall that, the Association of Bureaux de Change Operators of Nigeria (ABCON) raised the alarm that their operations have been rendered redundant due to lack of access to foreign exchange since July when the Central Bank of Nigeria (CBN) cut short their weekly supply.
It was also gathered that operators have said illiquidity has been a major challenge and that they could barely meet 30% of the effective market demand.