The Central Bank of Nigeria (CBN) has initiated regular foreign exchange sales through authorized dealer banks and licensed Bureaux De Change (BDCs) to enhance liquidity and stability in the foreign exchange market.
This move aligns with the CBN’s price stability mandate and commitment to ensuring a well-functioning market.
Recent fluctuations in the foreign exchange market have been attributed to demand pressure from corporate entities and seasonal summer demand.
To address this, the CBN will provide liquidity support to various segments of the official markets over the next few weeks.
On July 18 and 19, 2024, the CBN sold $106.5 million to 29 authorized dealer banks at exchange rates ranging from N1,498.00/US$1 to N1,530.00/US$1.
Conversely, it purchased $9.5 million from four authorized dealer banks at rates between N1,510.00/US$1 and N1,550.00/US$1, with a value date of July 19, 2024.
The CBN will continue to monitor authorized dealer banks’ compliance with trading rules and regulations to promote ethical conduct and support stability in the foreign exchange market.
The public is advised to direct their foreign exchange demands to their banks and BDC operators, adhering to prevailing market regulations.
This move demonstrates the CBN’s commitment to ensuring a stable and liquid foreign exchange market, promoting economic growth and development.
By increasing supply and supporting authorized dealers, the CBN aims to mitigate demand pressure and stabilize exchange rates.
The regular sale of foreign exchange will help maintain a well-functioning market, fostering economic stability and growth.