The Central Bank of Nigeria (CBN) has sold $876.26 million at a rate of N1,495 per dollar through a Retail Dutch Auction System (rDAS) to ease pressure in the foreign exchange market.
This sale, conducted on August 6, 2024, aimed to reduce demand pressure and support price discovery.
Dr. Omolara Omotunde Duke from the CBN’s Financial Markets Department explained that the bank received bids totaling $1.18 billion from 32 authorized dealer banks.
Of these, $876.26 million from 26 banks were successful, while $313.69 million from 6 banks were disqualified due to late submissions or incorrect forms.
The settlement for successful bids is set for August 8, 2024. The CBN will publish detailed bid results on its website to ensure transparency.
This measure is part of the CBN’s strategy to boost foreign exchange liquidity and stabilize the market.