On August 7, 2024, the naira gained slightly in official trading due to a $876.26 million sale by the Central Bank of Nigeria (CBN).
The currency strengthened to N1596 per US dollar from N1601/$ the previous day, following the CBN’s largest single sale under the new governor, Olayemi Cardoso.
The CBN’s retail auction aimed to boost the naira’s value amid rising foreign exchange demand.
Of the $1.18 billion in total bids, $876.26 million was accepted from 26 banks, while $313.69 million in bids from six banks were disqualified for various reasons. The auction’s results will be published on the CBN’s website.
Despite this intervention, the naira weakened in the parallel market, trading at N1,620 per dollar.
Analysts hope the auction will improve the naira’s value, projecting it could reach about N1,200/$ in the coming weeks if the CBN maintains its efforts and manages forex inflows effectively.
(Business Day)