UPDATE 2-Nigeria central bank sells $50 mln to gauge foreign FX demand -traders

(Adds central bank comment)
By Chijioke Ohuocha
ABUJA, Sept 2 (Reuters) - Nigeria's central bank has sold
around $50 million to foreign investors on the spot and forward
markets, in what the bank called a test trade to gauge the level
of dollar demand on the currency market, traders said on
Wednesday.
The central bank has gradually restarted dollar sales after
it halted supplies following a coronavirus-induced lockdown to
slow the spread of the virus, which also reduced its activities.
Dollar demand has been swelling and piling pressure on the
naira. Importers with past due obligations have scrambled for
hard currency while providers of foreign exchange, such as
offshore investors, have exited.
The central bank offered a 150-day forward on the currency
on Monday and also sold forex on the spot market, traders said,
quoting the central bank as saying that the backlog demand was
not huge.
A central bank spokesman confirmed Monday's intervention on
the spot market, widely quoted by investors and importers,
saying it had helped the naira rebound from a low of 480 naira
on the black market.
Foreign investors have sold Nigerian assets since February
because pandemic lockdowns stalled economic activity and
triggered a crash in the price of oil, Nigeria's main export.
Analysts estimate there is pent up demand of between $1.5
billion and $1.8 billon from investors looking to exit Nigeria,
whose economy faces recession in the third quarter.
The central bank has in the past urged investors to be
patient, saying funds can exit in an orderly fashion. On
Wednesday, the spot market traded $38.46 million.
The naira firmed almost 10% on the black market to 435
against the dollar on Tuesday on anticipation of resumed dollar
sales. The dollar was quoted at 380.50 naira on the official
market.
The non-deliverable forwards (NDF) market traded in London,
which gives an indication of where the currency could trade,
quoted the naira at 403 to the U.S. dollar in three months'
time.
The naira is seen past 400 on the futures market in January.