TheCable

The naira, Nigeria’s official currency, weakened by 1.13 percent against the dollar on the parallel market on Monday, as the demand for hard currencies surged.

The local currency was trading at 223 to the dollar on the parallel market, down from 220.50 to the dollar on Friday, Reuters is reporting.

Aminu Gwadabe, president of Bureau de change operators, spoke to Reuters, saying buyers were willing to pay for whatever was available, a trend sure to weaken the naira.

“The demand for the dollar is increasing while some customers are willing to buy at whatever rate they can get,” he said.

A trader was also quoted as saying: “The market is experiencing strong demand for the dollar from some individuals and businesses stocking for school resumption.”

The naira had traded as low as 240 to the dollar after the central bank listed some 41 items that could not be imported at the official exchange rate.

It strengthened after the bank increased the supply of dollars to bureaux de change, where importers were buying their dollars.

The naira is currently trading at 198.50 to the dollar on the interbank market, but dealers said it would eventually close at the 197 to a dollar peg rate set by the central bank.