Central Bank of Nigeria Sells Dollars to Banks at N1,495 Exchange Rate

Saturday, 10 August 2024, 23:29
The Central Bank of Nigeria (CBN) recently conducted a Retail Dutch Auction, approving successful dollar bids at an exchange rate of N1,495 per dollar. This rate is significantly lower than the pricing observed in the NAFEM window, which may indicate efforts by the CBN to manage liquidity and stabilize the naira. With ongoing fluctuations in the forex market, this decision aims to provide better access to dollars for banks and improve the overall economic environment.
Legit
Central Bank of Nigeria Sells Dollars to Banks at N1,495 Exchange Rate

Central Bank of Nigeria's Dollar Auction

The Central Bank of Nigeria (CBN) has initiated a Retail Dutch Auction, where it approved successful bids at a cut-off exchange rate of N1,495 per dollar.

Key Points

  • The approved exchange rate is lower than NAFEM's trading rates.
  • This initiative is part of efforts to increase liquidity.
  • The auction aims to stabilize the naira against the dollar.

Conclusion

This action by the CBN reflects its strategy to manage forex liquidity and support the naira as it navigates significant challenges in the currency market.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

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