CBN resumes selling of dollar to BDCs, ships out $122.67m to 46 authorised dealers

According to the Central Bank of Nigeria (CBN), in an effort to foster stability and lessen market volatility in the foreign exchange market, it has sold $122.671 million in dollars to 46 authorized dealers.

In a statement issued by Dr. Omolara Duke, the Bank’s Director in charge of Financial Markets, it was revealed that on July 10, 2024, $2.5 million was purchased from one Authorized Dealer and $67 million was sold to 27 Authorized Dealers. The value date for the payments, according to the two-day settlement cycle (T+2), is July 12, 2024. The bid range for the sales on July 10, 2024, was N1,480/$ and N1,500/$.

Similarly, on July 11, 2024, the sum of $55.171 million was sold to 19 Authorised Dealers at N1,540.0/$, and no FX was purchased. The value date for the payments of the spot sale is July 15, 2024.

The statement, therefore, urged all Authorised Dealers to ensure that foreign exchange purchases from the CBN are used exclusively for trade-backed transactions, which should be reported within 72 hours.

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.