CBN Sells $125.2m to 46 Authorised FX Dealers to Stabilise Naira

By Adedapo Adesanya

The Central Bank of Nigeria (CBN) has announced the sale of about $125.2 million to 46 authorised foreign exchange (FX) dealers in its determination to promote stability and reduce the volatility in the forex market.

A statement signed by the Bank’s Director in charge of Financial Markets, Mrs Omolara Duke, disclosed that of the total sale, $67.5 Million was allotted to 27 dealers, and $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 N1,480.00 per Dollar and N1,500.00 per Dollar while the value date for the payments, going by the settlement cycle of two days, is July 12, 2024.

Similarly, on July 11, 2024, the sum of $55.171 million was sold to 19 authorised dealers at N1,540.00/$1, and no FX was purchased. The value date for the payments of the spot sale is July 15, 2024.

The apex bank urged all authorised dealers to ensure that FX purchases from the CBN are used exclusively for trade-backed transactions, which should be reported within 72 hours.

While reiterating that the CBN supplies forex to the market to improve liquidity through spot sales to authorised dealers using two-way quotes, it assured to continue to ensure stability in the ecosystem.

This latest development comes after the widely reported increase in Nigeria’s external reserves to $35.05 billion as of July 8, 2024.

According to CBN’s data on external reserves, as of May 30 2023, the reserves were $35.09 billion, about 14 days before the introduction of the forex unification policy in June 2023.

However, when the CBN announced the FX unification policy, the external reserves dropped to $34.66 billion. In the months that followed till December 2023, the reserves fluctuated within the $33 billion range.

This year, the reserves plunged to a low of $32.11 billion on April 19, 2024, according to the data.

Business Post reports that the Naira appreciated to N1,554.65 per Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEX) as of July 11 with a significant increase in turnover.