The Central Bank of Nigeria (CBN) has taken action to stabilize the foreign exchange market by selling $122.67 million to 46 authorized dealers, following the naira’s sharp decline to N1,560 per dollar.
This move was confirmed by Dr. Omolara Duke, the CBN’s Director in charge of Financial Markets, in a statement released on Friday, July 12, 2024.
The statement highlighted the CBN’s commitment to promoting stability and reducing market volatility in the foreign exchange market. “The Central Bank of Nigeria has sold the sum of $122,671,000 to 46 authorized dealers in its determination to promote stability and reduce market volatility in the foreign exchange market,” it read.
In recent trading, the naira fell to N2,020 against the British pound and N1,560 against the dollar, marking a significant drop to a three-month low.
To counter this, the CBN sold $67.5 million to 27 authorized dealers and bought $2.5 million from one authorized dealer on July 10, 2024. The range of bids for the July 10 sales was between N1,480.0/USD and N1,500.0/USD, with a payment settlement date of July 12, 2024.
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Additionally, the central bank sold $55.17 million to 19 authorized dealers at N1,540 per dollar on July 11, 2024, though it did not purchase forex from any sellers on that date. The value date for these payments is set for July 15, 2024.
The CBN has instructed authorized dealers to use the foreign exchange purchased from the bank exclusively for trade-backed transactions and to report these transactions within 72 hours.
The apex bank reiterated its commitment to intervening in the forex market to ensure stability and support the financial market segment.
In an effort to keep stakeholders informed and engaged, the CBN encourages participation in its communication channels, including a dedicated WhatsApp group for real-time updates and information.
