In a move to promote stability and reduce market volatility in the foreign exchange (FX) market, the Central Bank of Nigeria (CBN) has sold a total of US$122,671,000.00 to 46 authorised dealers. This effort underscores the Bank’s determination to maintain liquidity and support the FX market.
A statement signed by Dr. Omolara Duke, the Director of Financial Markets at the CBN, revealed that out of the total sale, US$67,500,000.00 was allocated to 27 authorised dealers. Additionally, the sum of US$2.5 million was bought from one authorised dealer on July 10, 2024. The bid range for these sales was N1,480.0/US$ to N1,500.0/US$, with a value date for payments set for July 12, 2024, following the two-day settlement cycle (T+2).
On July 11, 2024, the CBN sold US$55,171,000.00 to 19 authorised dealers at a rate of N1,540.0/US$. No FX was purchased on this date, and the value date for the payments of this spot sale is July 15, 2024.
The CBN’s statement emphasised the importance of using FX purchases exclusively for trade-backed transactions, with a reporting requirement within 72 hours. It reiterated that the CBN will continue to supply foreign exchange to the market to enhance liquidity through FX spot sales to authorised dealers using two-way quotes.
“The Central Bank of Nigeria remains committed to ensuring stability in the FX market,” the statement concluded.
