Naira weakens on black market as dollar demand grows

The Nigerian naira weakened by 1.13 percent against the dollar on the parallel market on Monday amid rising demand for hard currencies.

The local currency was trading at N223 to the dollar on the parallel market, down from N220.50 to the dollar on Friday.

“The market is experiencing strong demand for the dollar from some individuals and businesses stocking for school resumption,” one trader said.

Nigeria’s naira had traded as low as N240 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 demand for the dollar is increasing while some customers are willing to buy at whatever rate they can get,” Aminu Gwadabe president of Bureau de change operators told Reuters.

The naira is currently trading at N198.50 to the dollar on the interbank market, but dealers said it would eventually close at the N197 to a dollar peg rate set by the central bank.

Source : BusinessDay

Tags: No tags

Comments are closed.