Naira weakens 2.3 per cent against dollar on black market

The Nigerian naira weakened against the dollar on Monday on the parallel market after a boost in liquidity and a surge in demand for dollars, traders said.
The naira was trading at 218 to the dollar in the bureau de change market, 2.34 percent weaker than the 213 it closed at on Friday.

“There is an upsurge in demand for the dollar due to increase in liquidity in the system, with some buyers wiling to pick up dollars at any available rate,” Aminu Gwadabe, president of Bureau de change operators said.

The naira hovered between 208-210 to the dollar last week after the central bank increased dollar sales to bureau de change operators in a bid to narrow the margin between parallel and interbank
market rates.


Another dealer said a number of people are buying up dollars to pay school fees and other commitments abroad, fuelling a surge in demand at the parallel market.


The naira was trading at 199 to the dollar on the official interbank window at 1204GMT, weaker than the 197 to the dollar rate where the local currency has closed since Feb, when the central bank introduce tight control in the official market.