We sold $543.5m to authorised dealers in 11 days – CBN

The Central Bank of Nigeria (CBN) says as part of move to address volatility in the forex market, it sold a total of US$543.5 million in September.

The FX was sold to authorized dealer banks through two-way quotes at the Nigerian Foreign Exchange Market (NFEM) on 11 dealing days.

The CBN disclosed this in a statement signed by its Director of Financial Markets Department,
Dr. Omolara O. Duke, on Friday.

The apex bank issued the clarification against the backdrop of the rising foreign exchange rate despite several interventions by the bank.

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According to the Nigerian Autonomous Foreign Exchange Market (NAFEM), the market closed the week with N1,631 to a dollar, on Friday.

The CBN had also regularly intervened through sale of dollars to registered bureau de change (BDC) operators.

According to the release on Friday, the bank sold $80m on September 26 being the highest during the period at between N1570 to N1580 to a dollar and on September 27, it sold $79m at N1530 to N1581 to one dollar followed by $77m on September 11 at between N1540 to N1575/$.

On September 9, the apex bank sold $66m at N1570 to N1585/$; it sold $56m on September 30 at N1540/$ while it sold $46m on September 13 at N1540 to N1575 to a dollar. Also it sold $39m on September 6 at N1580 to N1605 to one dollar.

On September 20, 2024, the apex bank boosted the market with $31m at N1540-N1545/$; sold $28m on
September 19 at N1540 and N1545; $24m on September 18 at N1530-N1540 and sold $17.5m on September 23 at N1540/$ being the lowest sold during the 11-day period in September amounting to $543.5m.

The statement said, “The FX spot sales was to reduce observed market volatility driven by high demand for commodity importation and seasonal demand for FX.

“This press release is to educate and provide guidance to the general public on the pricing of FX by taking a clue from the range of rates at which FX was sold by the CBN to Authorized Dealer banks.

“The CBN will continue to facilitate the supply of FX into the Nigerian Foreign Exchange Market (NFEM) as part of its holistic FX Management strategy.”