The naira closed at 312 against the dollar on Tuesday in a single interbank market trade of $100,000, Thomson Reuters data showed.

The local currency was offered at 313 to the dollar and a total of $3.11m had been traded by 1230 GMT.

The local currency closed at 312.50 against the dollar, the FMDQITC website showed.

At the parallel market, the naira closed flat at 395 against the greenback, the same rate it closed on Monday.

The naira had depreciated to 400 against the dollar on Friday.

Economic and financial analysts have linked the wide depreciation in the value of the naira against the dollar at the parallel market to huge demand for forex by holidaymakers seeking to travel abroad.

However, some experts said the huge demand for forex at the parallel market was beyond the normal summer rush.