CBN
Update: CBN sold $543.5m FX to Nigerian banks in September to curb volatility
The Central Bank of Nigeria (CBN) said it has sold a total of $543.5 million to authorized dealer banks between September 6 and September 30.
A statement from Omolara Duke, Director of the Financial Markets Department at the CBN, stated that the sales were in 11 dealing days through a two-way quote at the Nigeria Foreign Exchange Market (NFEM).
She said the spot sales were aimed at mitigating market volatility driven by high demand for commodity imports and seasonal foreign exchange needs.
The statement added that its purpose was to educate and provide guidance to the general public on the pricing of foreign exchange by referencing the range of rates at which it was sold by the CBN to authorized dealers.
It further stated that the CBN would continue to facilitate the supply of foreign exchange into the Nigerian Foreign Exchange Market (NFEM) as part of its holistic foreign exchange management strategy.
According to the statement, “The Central Bank of Nigeria (CBN) sold a total of US$543.5 million (Five Hundred and Forty-Three Million, Five Hundred Thousand US Dollars Only) from September 06-30, 2024, to Authorized Dealer banks through two-way quotes at the Nigerian Foreign Exchange Market (NFEM) on 11 dealing days.
“The FX spot sales were to reduce observed market volatility driven by high demand for commodity importation and seasonal demand for FX. The value dates for all the transactions were T+2.”