Nigerian naira seen gaining vs dollar on improve fx supply

Nigerian naira is seen reversing some of it losses next week on expectations that the lifting of forex transaction ban on some commercial lenders by the central bank will boost dollar supply in the parallel market and prop up the value of the naira.

Nigeria's central bank ended the suspension of eight lenders banned from the interbank currency market for failing to remit money owed to the government on Wednesday.
"We are hopeful that the lifting of the ban on some of the bank will raise dollar supply to the market in the coming days and we see the naira trading around 390-400 to the dollar in the near term," Aminu Gwadabe president of bureaux de change association said.
The local currency was quoted at 425 at the parallel market on Thursday, compared with 402 a dollar the previous week. On the interbank marker, the naira is quoted at 315 to the dollar at 1129 GMT, against 306 to the dollar close the previous day

First Bank, one of the eight banks initially suspended from the forex market has commenced process of selling dollar to some bureaux de change on Thursday.
Sources said the bank has sent out notice to bureau de change operators maintaining account with it to fund their naira account in readiness for dollar sales.
But, domiciliary account holders with the banks were unable to get dollar on request in the week shortly before the ban of forex transaction was lifted.
Gwadabe said if banks continue to supply dollar to bureau de change operators, who are the direct link with small dollar users, the local currency should appreciates in the coming days.