In a decisive move to promote stability and curb volatility in the foreign exchange market, the Central Bank of Nigeria (CBN) has sold $122,671,000 to 46 authorized dealers. This initiative underscores the CBN’s unwavering commitment to ensuring liquidity and steadiness within the FX market.
According to a statement released on Friday by Dr. Omolara Duke, the Bank’s Director of Financial Markets, the distribution of the funds occurred in two significant transactions. On July 10, 2024, a total of $67,500,000 was allocated to 27 authorized dealers. Concurrently, an additional $2.5 million was purchased from a single authorized dealer. The bid range for these transactions was set between N1,480/$1 and N1,500/$1, with the payments scheduled for settlement on July 12, 2024, adhering to the standard T+2 settlement cycle.
Continuing its efforts, on July 11, 2024, the CBN further sold $55,171,000 to 19 authorized dealers at a rate of N1,540/$1. No foreign exchange purchases were recorded on this date. The settlement for these transactions is slated for July 15, 2024.
The statement from the CBN emphasized the critical requirement for all authorized dealers to ensure that foreign exchange purchases from the CBN are strictly utilized for trade-backed transactions. These transactions must be reported within 72 hours, promoting transparency and proper usage of FX resources.
Reaffirming its dedication to market stability, the CBN highlighted its ongoing provision of foreign exchange liquidity through spot sales to authorized dealers using two-way quotes. The Bank assured that it will persist in implementing measures designed to maintain equilibrium and adequate liquidity in the foreign exchange market, thus bolstering economic activities and reinforcing investor confidence.
