The Central Bank of Nigeria (CBN) stated on Friday that in order to stabilise the Naira, it has sold USS106.5 million to licenced dealers over the course of two days.
The trades took place on Thursday, July 18 and Friday, July 19
According to the CBN, the anticipated summer seasonal spike and growing demand from corporate entities are the main causes of the current volatility in the foreign exchange market.
The CBN has started regular foreign exchange sales through authorized dealer banks and licensed bureaux de change (BDCs) in response to these challenges.
This programme is in line with the CBN’s objective to preserve market liquidity and stability through price stability.
The CBN intends to keep supporting several official market segments with liquidity during the upcoming weeks. A total of USS106,500,000 was sold to 29 licenced dealer banks during the sales that took place on July 18 and 19, with exchange prices ranging from N1,498.00/USS1 to N1,530.00/USS1.
Furthermore, the CBN acquired US$9,500,000 at rates ranging from N1,510.00/USS1 to N1,550.00/US$1 from four authorised dealer banks. July 19, 2024 is the day that these transactions will be valued.
A CBN representative, Omolara Omotunde Duke, stressed that the bank will keep a careful eye on adherence to current trading laws and guidelines in order to encourage moral behaviour among authorised dealer banks. This endeavour is a component of a larger plan to stabilise the foreign currency market.
Following current market restrictions, the CBN urges the general people to route their requests for foreign exchange through their banks and BDC operators.
The CBN’s proactive stance demonstrates its resolve to uphold foreign exchange market stability in the face of mounting demand pressure.
The dollar was quoted at N1,596.92 on Friday, compared to N1,566.82 on Thursday at the Nigerian Autonomous Foreign Exchange Market (NAFEM), which resulted in a 1.88 percent decline in the value of the naira at the closure of the foreign exchange market, as per FCDQ Securities Exchange Limited data.
The local currency finished at N1,580 on the black market, or parallel market, as opposed to N1,5640 on Thursday.
