The Central Bank of Nigeria (CBN) announced on Friday that it sold foreign currencies worth $106.5 million to authorized dealers over two days, Thursday and Friday.
Additionally, the CBN purchased foreign currencies worth $9.5 million from four authorized dealers.
In a statement, the CBN attributed recent movements in the foreign exchange market to demand pressure from corporate entities and the expected seasonal uptick during the summer period.
“The Central Bank of Nigeria (CBN) wishes to inform the general public that recent movements in the foreign exchange market are driven largely by demand pressure from corporate entities and the expected seasonal uptick during the summer period,” the statement read.
The CBN assured the public that it has commenced regular sales of foreign exchange (FX) through authorized dealer banks and licensed bureaux de change (BDCs) to enhance supply in the FX market. This action aligns with the CBN’s price stability mandate and its commitment to ensuring a well-functioning and liquid market.
Over the coming weeks, the CBN will continue to support various segments of the official markets with liquidity.
“In line with the above, the CBN on Thursday, July 18 and Friday, July 19, 2024, sold a total sum of US$106,500,000.00 (One Hundred and Six Million and Five Hundred Thousand US Dollars Only) to 29 (Twenty-Nine) Authorized Dealer banks between an exchange rate range of N1,498.00/US$1 to N1,530.00/US$1,” the statement added.
“In addition, it bought US$9,500,000 (Nine Million and Five Hundred Thousand Dollars) from 4 (Four) Authorized Dealer banks at rates between N1,510.00/US$1 and N1,550.00/US$1. The value date for all the transactions is July 19, 2024.
“Additionally, the CBN will continue closely monitoring compliance with existing trading rules and regulations by authorized dealer banks to promote ethical conduct and support the drive to achieve stability in the foreign exchange market.”
The CBN advised the public to direct their FX demand to their banks and BDC operators in accordance with prevailing market regulations.
