The Central Bank of Nigeria (CBN) has announced the sale of $876.26 million to end users through 26 successful banks at a cut-off rate of N1,495 per dollar. This transaction was part of the latest Retail Dutch Auction System.
In a statement released on Wednesday, Omolara Duke, the Director of the Financial Markets Department, disclosed that the CBN received a total of $1.18 billion in bids from 32 authorized dealer banks. However, only 26 banks met the necessary requirements and deadlines, while six banks were disqualified.
“The Bank approved a cut-off rate of N1495/US$ for the Retail Dutch Auction where bids valued at US$876.26 million from 26 banks qualified,” Duke stated. “Bids valued at US$313.69 million from six banks were disqualified. Four banks submitted their bids after the cut-off time of 3:00 pm, and two banks did not provide bids in the required template.”
The statement further noted that any bids submitted with Form Q or unverifiable Form A and Form M on the Trade Portal were disqualified.
This announcement comes on the heels of CBN’s initiation of the Retail Dutch Auction System amid a spike in dollar demand. On Wednesday, the Naira appreciated for two consecutive days, closing at N1,601 against the Dollar.
