The naira on Monday closed at N705 to the greenback on the parallel market, down from N702 to the dollar on Friday, according to traders.

On the official foreign exchange widow, the local currency also lost 0.75 per cent of its value to the dollar.

Traders said the naira weakened to the greenback at the Investors and Exporters (I&E) forex window by 0.75 per cent to close at N432.75 to the dollar. The naira traded at N431.50 to the dollar on the forex window also known as NAFEX on Friday.

Traders said most participants at the forex market maintained bids between N425.00 and N437.50 per dollar.

On the parallel market, sources at the bureau de change said increase demand for the dollar without commensurate supply has continued to impact the value of the local currency on the market.

The decline in the naira value has been blamed on the shortage of dollar as a result of low accretion to the foreign exchange reserves due as the government spends bulk of revenue from oil exports on fuel subsidy.

Due to huge volume of stolen crude in the Niger Delta, the country has not been able to meet its Organization of Petroleum Exporting Countries (OPEC) production qouta, depriving the country from benefiting from high oil prices at the international market.

The country’s reserves fell to $39.02 billion by September 1, 2022 from $39.09 billion a month earlier, Central Bank of Nigeria (CBN) data showed on Monday.