The Central Bank of Nigeria (CBN) on Friday intervened in the foreign exchange market by selling the sum of US$122.67 million to 46 authorised dealers in its determination to promote stability and reduce market volatility in the market.
A statement signed by Omolara Duke, CBN’s director in charge of financial markets, disclosed that of the total sale, US$67,500,000.00 was sold to 27 authorised dealers, while the sum of US$2.5 million was bought from one authorised dealer on July 10, 2024.
The range of the bid for the July 10, 2024 sales was N1,480.0/US$-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.
Similarly, on July 11, 2024, the sum of US$55.17 was sold to 19 authorised dealers at N1,540.0/US$, and 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 foreign exchange purchases from the CBN are used exclusively for trade-backed transactions, which should be reported within 72 hours.
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, it assured that the Bank will continue to ensure stability in the FX market.
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