The Central Bank of Nigeria (CBN) has announced the sale of $148 million in foreign exchange (FX) to 29 authorized dealer banks over a two-day period, on July 22 and 23, 2024.
The CBN disclosed this information in a statement published on its official website today.
The apex bank revealed that the FX transactions were conducted on the Nigerian Foreign Exchange Market (NFEM) at exchange rates of N1,470 and N1,510 per dollar respectively.
Official Statement
“The Central Bank of Nigeria (CBN) sold a cumulative sum of $148 million (One hundred and forty-eight million United States Dollars) in the Nigerian Foreign Exchange Market (NFEM) to Authorized Dealers on July 22 and 23, 2024,” the statement read.
The CBN further detailed the specifics of the transaction, stating: “The sale of foreign exchange (FX) was to 29 (twenty-nine) authorized dealer banks at an exchange rate of N1,470 per dollar, N1,510 per dollar.”
In addition to selling FX, the CBN also made a purchase during this period. “The CBN bought $2 million (Two million United States dollars) from 1 (one) Authorized Dealer bank at the rate of N1,505 per dollar,” the statement added.
Transaction Details
The CBN noted that the value dates for the transactions held on July 22, 2024, were T+0, while those on July 23, 2024, were also T+0, indicating that the settlement for these transactions occurred on the same day they were conducted.
Implications
The sale and purchase of FX by the CBN are part of its ongoing efforts to manage liquidity and stabilize the exchange rate in the Nigerian Foreign Exchange Market.
These actions reflect the bank’s commitment to maintaining a balance between supply and demand for foreign currency, which is crucial for economic stability.
