CBN Sells $122.67m to 46 Authorized Dealers to Stabilize FX Market

 

The Central Bank of Nigeria (CBN) has sold $122,671,000 to 46 authorized dealers in an effort to promote stability and reduce volatility in the foreign exchange (FX) market. This initiative was disclosed in a statement signed by Dr. Omolara Duke, the Bank’s Director of Financial Markets.

Of the total sale, $67.5 million was sold to 27 authorized dealers, while $2.5 million was purchased from one authorized dealer on July 10, 2024. The bid range for the July 10 sales was N1,480/US$ to N1,500/US$, with a value date for payments, following the two-day settlement cycle (T+2), set for July 12, 2024.

On July 11, 2024, the CBN sold an additional $55,171,000 to 19 authorized dealers at N1,540/US$, with no foreign exchange purchased. The value date for these spot sales payments is July 15, 2024.

The CBN’s statement emphasized that authorized dealers must ensure foreign exchange purchases from the CBN are used exclusively for trade-backed transactions, which should be reported within 72 hours. The bank reiterated its commitment to supplying foreign exchange to the market to enhance liquidity through FX spot sales to authorized dealers using two-way quotes, assuring continued efforts to maintain stability in the FX market.