NNPC to sell dollars at Interbank market

Expected largedollar sales bythe Nigerian National Petroleum Corporation (NNPC) could help support the naira to trade around N154 to the dollar this week.The NNPC is the largest dollar supplier to the interbank market and usually sells about $300-$500 million to some banks on a monthly cycle.It is yet to sell dollars for April, but sales by other multinational energy firms on Wednesday provided support for the naira, which was trading at 154.80 early on Thursday compared to N154.97 per dollar at Wednesdays close.Traders at the interbank market five energy companies, including units of Total, Shell, Statoil, Agip and Exxon Mobil, sold around $100 million to selected banks, helping to boost dollar availability.Were expecting the NNPC will come into the market any time from now. If we have the confirmation, the naira should strengthen further, one dealer said.The successful conclusion of elections last month has eased political uncertainty, which had been weighing on the naira.I dont think demand for the dollar is strong again, especially after the conclusion of the elections.  The outlook favours stable policy and increased dollar inflows into the market, another currency trader said.The Central Bank of Nigeria (CBN) sold $350 million at N153.02 to the dollar at its bi-weekly forex auction on Wednesday, below the $383.33 million demanded, but higher than the $250 million sold at N152.92 per dollar at its previous auction.CBN Governor, Lamido Sanusi, said on Thursday that dollar demand in Nigeria was returning to normal after last months elections and should be satisfied by central bank sales of $250 million to $300 million at bi-weekly auctions.He also said the central bank  might  have to take further monetary measures if the government did not tighten fiscal policy.
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