Pent-up demand for dollars may push Nigeria’s naira at least 20 percent weaker when the central bank allows the currency of Africa’s biggest economy to float freely on Monday, said analysts including Renaissance Capital Ltd. and Exotix Partners LLP. Demand for foreign currency has built up to about $3 billion since capital controls were imposed 15 months ago to defend the currency’s peg of 197-199 per dollar, according to Chapel Hill Denham Securities Ltd. Even as the naira weakens, local stocks may extend the best three-day rally since April 2015 in anticipation of a return by foreign investors and as the risk of exclusion from global indexes fades. Banks may gain as the policy change allows them to profit from foreign-exchange volatility and boost trading income, analysts at Exotix said. “We think the rate will be around 250 or 260 per dollar” when the naira starts trading on the […]