The Central Bank of Nigeria (CBN) recently held a Retail Dutch Auction System (RDAS) to address the growing demand for foreign exchange (FX) and stabilize the market.
In this auction, $876.26 million was allocated to 26 banks, with Zenith Bank, Access Bank, and First Bank among the highest recipients.
The auction boosted the NGX Banking Index by 5.1%.A total of 32 banks participated, but six were disqualified for incomplete bids, leaving the remaining banks to share 75% of the total $1.18 billion bid amount.
Zenith Bank received the highest allocation, followed by First Bank and Access Bank.
Other banks like Fidelity Bank and GTCO also received significant allocations, contributing to their financial stability.
The auction, led by CBN Governor Olayemi Cardoso, reflects the CBN’s efforts to stabilize the naira and ensure transparency in the FX market.
Experts noted that higher FX allocations help banks meet the demands of their customers for international transactions.