CBN
CBN sells $122.67m to 46 authorised dealers to promote FOREX stability
The Central Bank of Nigeria (CBN) has sold about $122.67m to 46 authorised dealers aimed at promoting stability and reducing market volatility in the foreign exchange market.
A statement signed by the Bank’s Director in charge of Financial Markets, Dr. Omolara Duke, disclosed that of the total sale, $67,500m was sold to 27 dealers, while the sum of US$2.5m was bought from one authorised dealer on July 10, 2024.
The range of the bid for the July 10, 2024 sales was ₦1,480.0/US$- ₦1,500.0/US$, while the value date for the payments, going by the settlement cycle of two days, is July 12, 2024.
Similarly, on July 11, 2024, the sum of $55,171m was sold to 19 authorised dealers at ₦1,540.0/US$, and no FX was purchased. The value date for the payments of the spot sale is July 15, 2024.
The apex bank urged all authorised dealers, to ensure that foreign exchange purchases from the CBN, are used exclusively for trade-backed transactions, which should be reported within 72 hours.
Reiterating its commitment to improving liquidity, the CBN supplies FX to the market through spot sales to authorised dealers using two-way quotes. The Bank assured that it would continue to strive for stability in the FX market.
It stated: “The CBN’s directive emphasises that FX acquired from the bank must be exclusively utilised for trade-backed transactions, with reporting required within 72 hours. This measure is intended to ensure transparency and proper use of allocated resources.
“By maintaining a consistent supply of FX through FX spot sales to authorised dealers, the CBN aims to improve market liquidity and assure market participants of its commitment to sustaining FX market stability.
“This proactive approach is crucial for supporting economic activities and fostering confidence among stakeholders in the Nigerian financial market.”
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