By Grace Samuel
The Central Bank of Nigeria (CBN) has sold US$122,671,000 to 46 Authorised Dealers in its determination to promote stability in the country’s foreign exchange (FX) market.
The Bank’s Director in charge of Financial Markets, Dr. Omolara Duke, who disclosed this in a statement, said the intervention will also reduce volatility of the FX market.
Giving a breakdown of the transactions, Dr. Duke said US$67,500,000 was sold to 27 Authorised Dealers, while the sum of US$2.5 million was bought from one Authorised Dealer on July 10, 2024.
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According to the statement, the range of the bid for the July 10, 2024 sales was between N1,480.0/US$ and N1,500.0/US$, while the value date for the payments, going by the settlement cycle of two days (T+2), is July 12, 2024.
Dr. Duke disclosed further that on July 11, 2024, the sum of US$55,171,000 was sold to 19 Authorised Dealers at N1,540.0/US$, adding that no FX was purchased. The value date for the payments of the spot sale is July 15, 2024.
The statement, therefore, urged all Authorised Dealers to ensure that the foreign exchange they purchase from the CBN are used exclusively for trade-backed transactions, which should be reported within 72 hours.
The Director, who reiterated that CBN was determined to improve liquidity through FX spot sales to Authorized Dealers using two-way quotes, said the Bank will continue to ensure stability in the FX market.
