The Central Bank of Nigeria (CBN) has sold $148 million to 29 authorised dealers in the Nigerian Foreign Exchange Market (NAFEM) to provide more liquidity in the foreign exchange (FX) market.
In a statement seen by BusinessDay on Friday night, the CBN said the transactions were conducted on July 22 and 23, 2024, noting that the bank sold the dollar at exchange rates between N1470.00/$ and N1510.00/$.
The statement quoted Hakama Sidi Ali, acting director of the Corporate Communications Department of the CBN, as saying that the bank is desirous of stabilising the FX market
The statement stressed the CBN governor’s commitment to stabilising the foreign exchange market.
“The Governor has assured that the Bank will continue to address the supply gap to ensure the market stability,” it noted.
The CBN is intermittently selling dollars to authorised dealers to reduce FX market volatility and support the naira.
On July 12, the CBN sold $122.67 million to 46 dealers in two days. The bank also sold $106.5 million to 29 authorised dealer banks at rates between N1,498.00/$ and N1,530.00/$ on Thursday, July 18, and Friday, July 19, 2024.
However, these sales have made little or no impact on the naira. Naira fell to a four-month low, closing at 1,603.80 to the dollar on Thursday at the NAFEM, its lowest level since March 14.
The local currency sold between N1,650 and N1,680 in the street, popularly known as black market.
The free fall of the naira has made it the second worst performing currency in the world in 2024 — downgrading it from its best-performing position earlier this year, according to Bloomberg.
