The naira weakened against the dollar on the interbank market on Monday, pressured by increased demand for the U.S. currency from importers amid limited supply from oil companies.
The naira closed at 161.65 to the dollar compared with Friday’s close of 161.25.
“The market is experiencing a dearth of dollar supply, while demand has risen in the last week,” one dealer said.
The naira had firmed to 158.30 a week ago on the back of dollar supply from oil companies and offshore investors buying local debt.
Dealers said expectations of dollar inflows from offshore investors participating in a debt auction this week could boost the naira.
Nigeria plans to raise about N70 billion ($434.19 million) by issuing three-year and 10-year bonds on Wednesday at an auction.
