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 223 to the dollar on the parallel market, down from 220.50 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.

READ ALSO  EMC boosts scalability, workload consolidation, automation with XtremIO 4.0

Nigeria’s 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.

READ ALSO  Ogun govt. set to sell branded rice

“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.

READ ALSO  As UN set to take stock of humanitarian crisis in Lake Chad Basin

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