In its determination to promote stability and reduce market volatility in the foreign exchange market, the Central Bank of Nigeria, CBN, has confirmed selling the sum of US$122,671,000.00 to 46 authorized dealers.
A statement signed by the Bank’s Director in charge of Financial Markets, Dr. Omolara Duke disclosed that of the total sale, US$67,500,000.00 was sold to 27 authorized dealers, while the sum of US$2.5 million was bought from one dealer on July 10, 2024.
The range of the bid for the July 10, 2024 sales was N1,480.0/US$-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.
July 11, 2024, the sum of US$55,171, 000 was sold to 19 authorized dealers at N1,540.0/US$, and no FX was purchased. The value date for the payments of the spot sale is July 15, 2024.
The statement, therefore, urged all authorized dealers to ensure that foreign exchange purchases from the CBN are used exclusively for trade-backed transactions, which should be reported within 72 hours.
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While reiterating that the CBN supplies foreign exchange to the Foreign Exchange, FX, market to improve liquidity through FX spot sales to Authorized Dealers using two-way quotes, it assured that the Bank will continue to ensure stability in the FX market.
Last month, The President Association of Bureau De Change Operators of Nigeria, Aminu Gwadebe, stated that the apex bank had suspended supply to the BDCs since March and was moving towards a complete liberalization of the foreign currency market, which would not require its intervention.
He said: “The BDC window has been suspended by the Central Bank of Nigeria since around March or so. The last time we were funded I think was around March.”
This forex sales break allowed the naira to depreciate further to N1554/$ at the official market on Thursday.
Earlier this week, Nigeria’s external reserves increased yet again, reaching $35.05 billion as of July 8, 2024.
This is the first time it has crossed the $35 billion ceiling under the administration of President Bola Tinubu.
Credible News.ng
