In a strategic move to promote stability and curb market volatility, the Central Bank of Nigeria (CBN) has sold $122.671 million to 46 authorized dealers.
This effort, disclosed in a statement by Dr. Omolara Duke, Director of Financial Markets at CBN, underscores the Bank’s commitment to ensuring a stable foreign exchange market.
According to the statement, on July 10, 2024, the CBN sold $67 million to 27 authorized dealers and purchased $2.5 million from one dealer.
The bid range for this sale was between N1,480/$ and N1,500/$, with a value date set for July 12, 2024, following the two-day settlement cycle (T+2).
On July 11, 2024, the Bank further sold $55.171 million to 19 authorized dealers at a rate of N1,540.0/$, without any foreign exchange purchases on that day.
The value date for these payments is set for July 15, 2024.
The CBN emphasized the importance of using these foreign exchange purchases exclusively for trade-backed transactions, which must be reported within 72 hours.
Reaffirming its commitment to market stability, the statement read: “The CBN supplies foreign exchange to the Foreign Exchange (FX) market to improve liquidity through FX spot sales to Authorized Dealers using two-way quotes.”
The Bank assured that it will continue to monitor and maintain stability in the FX market.