The Central Bank of Nigeria (CBN) has announced the sale of $543.5 million to authorized dealer banks between September 6 and 30, 2024. The amount, equivalent to N844.92 billion, was sold at the rates of N1,540 and N1,580.
According to Omolara Duke, Director of Financial Markets Department, the sale aimed to reduce market volatility caused by high commodity importation and seasonal FX demand.
The funds were distributed among 26 authorized dealer banks over 11 trading days. Despite this intervention, the naira only appreciated by 2.77% to N1,541 in the official market. However, it hits a record low of N1,700 per dollar in the parallel market.
This move by the CBN seeks to stabilize the foreign exchange market. The sale was conducted through two-way quotes in the Nigerian Foreign Exchange Market.
The statement read, “The Central Bank of Nigeria sold a total of US$543.5m from September 06-30, 2024, to Authorized Dealer banks through two-way quotes at the Nigerian Foreign Exchange Market 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.
“This press release is to educate and provide guidance to the general public on the pricing of FX by taking a clue from the range of rates at which FX was sold by the CBN to Authorised Dealer Banks.
“The CBN will continue to facilitate the supply of FX into the Nigerian Foreign Exchange Market as part of its holistic FX Management strategy,” the statement concluded.
