The Central Bank of Nigeria (CBN) has announced the sale of $876.26 million in foreign exchange (FX) to banks at a rate of N1,495 per dollar. The move aims to alleviate demand pressure in the FX market and promote price discovery. The transaction was conducted through a retail Dutch auction system (rDAS), which allows for direct FX sales to end-users through banks.
The CBN received a total bid of $1.18 billion from 32 authorized dealer banks, with 26 banks qualifying for $876.26 million. Six banks were disqualified due to late submissions or incomplete templates. The regulator emphasized its commitment to transparency, stating that all bids and qualified payments will be published on its website.
The rDAS system is designed to address FX demand from end-users, promoting price discovery and reducing market pressure. The CBN’s financial markets department director, Omolara Omotunde Duke, signed the statement announcing the transaction.
