The Central Bank of Nigeria (CBN) has sold approximately $122.67 million to 46 authorized dealers in its effort to promote stability and reduce market volatility in the foreign exchange market.
In a statement signed by the Bank’s Director in charge of Financial Markets, Dr. Omolara Duke, it was disclosed that of the total sale, $67.5 million was sold to 27 dealers, while $2.5 million was bought from one authorized dealer on July 10, 2024.
The bid range for the July 10, 2024 sales was ₦1,480.0/US$ to ₦1,500.0/US$, with the value date for payments set to July 12, 2024, based on the two-day settlement cycle.
Similarly, on July 11, 2024, $55.171 million was sold to 19 authorized dealers at ₦1,540.0/US$, with no FX purchased. The value date for these payments is July 15, 2024.
The apex bank urged all authorized dealers to ensure that foreign exchange purchases from the CBN are used exclusively for trade-backed transactions and reported within 72 hours.
Reiterating its commitment to supplying foreign exchange to the market to improve liquidity through FX spot sales to authorized dealers using two-way quotes, the CBN assured that it will continue to ensure stability in the FX market.
On Thursday, Channels Television reported an increase in Nigeria’s external reserves to $35.05 billion as of July 8, 2024.
According to CBN’s external reserves data as of May 30, 2023, reserves stood at $35.09 billion, approximately 14 days before the introduction of the foreign exchange (FX) unification policy in June 2023.
However, following the announcement of the FX unification policy, the external reserves decreased to $34.66 billion. From July to December 2023, the reserves fluctuated within the $33 billion range.
In 2024, the reserves reached a low of $32.11 billion on April 19, according to the data.
The central bank Governor attributed this decline primarily to debt repayments and other standard financial obligations rather than efforts to support the naira.
Analysis of CBN’s data indicated a recent increase in the exchange rate, surpassing $34 billion for the first time since April. The reserves have continued to grow in July, marking the highest level in the past year.
Since hitting the low of $32.11 billion in April, the external reserves have increased by $2.94 billion in less than three months, according to CBN data.
The CBN has announced plans to double diaspora remittance inflows this year by ensuring a steady flow of foreign exchange into the country.
Comments are closed.