The Central Bank of Nigeria (CBN) on Wednesday intervened in the foreign exchange market, selling $876.26 million to end users through a Retail Dutch Auction. The move is aimed at alleviating pressure on the naira, which has been under strain due to increased demand.
A total of $1.18 billion in bids were submitted by 32 authorized dealer banks. However, $313.69 million worth of bids from six banks were disqualified for late submission or failure to comply with the bidding format. The CBN set a cut-off rate of N1495 to the US dollar for the auction.
The apex bank attributed the rising demand for foreign exchange to seasonal factors, such as summer tourism, and increased imports.
Omolara Omotunde Duke, director of the Financial Markets Department, reiterated the CBN’s commitment to improving foreign exchange liquidity and price discovery. The full auction results will be published on the CBN’s website.
