The Central Bank of Nigeria (CBN) has announced the commencement of regular sale of foreign exchange (FX) through Authorized Dealer Banks and licensed Bureaux De Change (BDCs) to improve supply in the FX market in line with its price stability mandate and its commitment to ensure a well-functioning and liquid market.
To this end, the CBN said it sold a total sum of US$106,500,000.00 to 29 Authorized Dealer banks between an exchange rate range of N1,498.00/US$1 to N1,530.00/US$1.
In addition, the apex bank stated that it bought US$9,500,000 from four Authorized Dealer banks at rates between N1,510.00/US$1 and N1,550.00/US$1, explaining that the value date for all the transactions is July 19, 2024.
In a statement on Friday by Omolara Omotunde Duke (Ph.D.), Director, Financial Markets Department of the CBN said over the next few weeks, it will continue to support various segments of the official markets with liquidity.
“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.
“Therefore, the general public is advised to direct their foreign exchange demand to their banks and BDC operators in accordance with prevalling market regulations,” the CBN further stated.
The CBN informed that the 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.
