The Central Bank of Nigeria (CBN) sold $148 million to 29 approved dealers in the Nigerian Foreign Exchange Market (NAFEM) to increase liquidity in the foreign exchange (FX) market.
The CBN said that the transactions took place on July 22 and 23, 2024, in a statement obtained by The News Chronicles on Friday night. The bank sold the dollar at currency prices ranging from N1470.00/$ to N1510.00/$.
According to the statement, the CBN’s acting head of corporate communications, Hakama Sidi Ali, stated that the bank wants to stabilise the foreign exchange market.
The CBN governor’s dedication to stabilising the foreign exchange market was emphasised in the statement.
It said, “The Bank will continue to address the supply gap to ensure the stability of the market, as assured by the Governor.”
In order to stabilise the naira and lessen volatility in the foreign exchange market, the CBN occasionally sells dollars to approved dealers.
In just two days on July 12, the CBN sold $122.67 million to 46 dealers. Additionally, on Thursday, July 18, and Friday, July 19, 2024, the bank sold $106.5 million to 29 authorised dealer banks at rates ranging from N1,498.00/$ to N1,530.00/$.
On the other hand, the naira has not been affected at all by these sales. At the NAFEM on Thursday, the Naira closed at 1,603.80 to the dollar, its lowest level since March 14, marking a four-month low.
The black market is the term for the local currency that is sold in the street for between N1,650 and N1,680.
According to Bloomberg, the naira’s fast decline has dropped it from its best-performing position earlier this year to the second worst-performing currency in the world in 2024.
