The Central Bank of Nigeria (CBN) has initiated regular sales of foreign exchange through Authorized Dealer Banks and licensed Bureaux De Change (BDCs) in response to current fluctuations in the foreign exchange market.
These fluctuations primarily stem from demand pressures driven by corporate entities and seasonal increases typical during the summer period. The CBN aims to stabilize the market and facilitate smoother transactions for businesses and individuals involved in foreign exchange activities.
Dr. Omolara Omotunde Duke, Director of the Financial Markets Department at the CBN, reaffirmed the bank’s commitment to addressing demand pressures and ensuring market stability in a statement on Friday night.
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Recent transactions disclosed by the CBN indicate that it sold a total of US$106,500,000.00 to 29 authorized dealer banks on Thursday, July 18, and Friday, July 19, 2024. These transactions occurred within an exchange rate range of N1,498.00/US$1 to N1,530.00/US$1. Additionally, the CBN purchased US$9,500,000 from four authorized dealer banks at rates between N1,510.00/US$1 and N1,550.00/US$1, with settlement scheduled for July 19, 2024.
The CBN reiterated its commitment to closely monitor compliance with trading rules and regulations among authorized dealer banks to promote ethical conduct and market stability.
The general public was advised to direct their foreign exchange demands to their respective banks and BDC operators in accordance with prevailing market regulations.
With these measures, including regular foreign exchange sales and vigilant monitoring of trading practices, the CBN aims to alleviate demand pressures, foster market stability, and maintain a robust foreign exchange environment.