The Central Bank of Nigeria (CBN) has taken a significant step to stabilize the foreign exchange market by selling $122.67 million to 46 authorized dealers. This was contained in a statement signed by the Bank’s Director in charge of Financial Markets, Dr. Omolara Duke.
The statement disclosed that sum of $67,500m was sold to 27 dealers, while the sum of US$2.5m was bought by one authorised dealer on July 10, 2024.
The range of the bid for the July 10, 2024 sales was ₦1,480.0/US$- ₦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 $55,171m was sold to 19 authorized dealers at ₦1,540.0/US$. The value date for the payments of the spot sale is July 15, 2024.
While reiterating that the CBN supplies foreign exchange to the Foreign Exchange market to improve liquidity through FX spot sales to authorised Dealers using two-way quotes.
This move is aimed at promoting market stability and reducing volatility as the exchange rate.
On Thursday, it was reported that there was an increase in Nigeria’s external reserves to $35.05bn as of July 8, 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.
