The naira is seen reversing its losses as traders anticipate improved dollar supply from international money transfer agencies to ease a shortage, which has pushed down the local currency this week.
The naira fell 470 to a dollar on the black market on Thursday, from 455 a dollar last week because of a surge in demand from small businesses and parents buying hard currencies to pay school fees abroad. The currency has remained stable at 305.50 to the dollar on the official window due to support from the central bank.
“The naira should appreciate gradually in the coming days after the expected sales of about $21 million by Travelex today, and subsequent extension of dollar sales to bureau de change operators in the other part of the country,” Aminu Gwadabe, president of the association of bureau de change operators, said.
Travelex and First Bank are authorised by the central bank to sell dollar to bureaux de change to boost liquidity and narrow the gulf with the official rate.