CBN Sells $106m, To Begin Regular Dollar Sales To Banks, BDCs

The Central Bank of Nigeria (CBN) said it has sold $106.5 million to authorised dealers as it planned to boost foreing exchange supply at the official window as well as the Bureau de Change (BDC) window through sales over the next weeks.

In a statement issued by the apex bank and signed by its Director, Financial Markets Department, Dr Omolara Duke, on Saturday night, the CBN said it has commenced regular sale of foreing exchange through authorised dealers and BDCs. This is coming after it announced that it would be selling $20,000 to eligible BDCs.

Noting that the recent movements in the forex market were driven largely by demand pressure from corporate entities and the expected seasonal uptick during the summer period, it stated that it “has commenced a regular sale of foreign exchange through Authorized Dealer Banks and licensed Bureaux De Change (BDCs) to improve supply in the foreign exchange market in line with its price stability mandate and its commitment to ensure a well-functioning and liquid market.

“Over the next few weeks, the CBN will continue to support various segments of the official markets with liquidity. In line with the above, the CBN on Thursday, July 18 and Friday, July 19, 2024, sold a total sum of $106.5 million to 29 Authorized Dealer banks between an exchange rate range of N1,498 to N1,530 per dollar.

“In addition, it bought $9.5 million from four Authorized Dealer banks at rates between N1,510 and N1,550 to the dollar. The value date for all the transactions is July 19, 2024. Additionally, the CBN will continue closely monitoring compliance with existing trading rules and regulations by authorized dealer banks to promote ethical conduct and support the drive to achieve stability in the foreign exchange market.

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“Therefore, the general public is advised to direct their foreign exchange demand to their banks and BDC operators in accordance with prevailing market regulations.”