The Central Bank of Nigeria (CBN) has introduced a Retail Dutch Auction System (DAS) to address the fluctuations in the forex market and the rising demand for foreign currency.
This new system aims to stabilize the exchange rate of the naira.
In a recent circular to banks, the CBN instructed all authorized dealer banks to provide a comprehensive list of outstanding foreign exchange demands from their customers.
This step is meant to tackle the growing pressure on the forex market.
Starting from August 7, the CBN’s new initiative will require prospective customers to have naira-backed accounts for participation in the auction.
This measure ensures immediate settlement upon bid acceptance by the CBN.