Central Bank of Nigeria Allocates $876.26 Million in Latest FX Auction
In a move aimed at enhancing foreign exchange liquidity and stabilizing the naira, the Central Bank of Nigeria (CBN) auctioned $876.26 million to 26 banks on August 6, 2024, through its Retail Dutch Auction System.
The auction, conducted by the apex bank, was part of its strategy to alleviate pressure on the foreign exchange market and support effective price discovery. A statement released by the CBN on August 7, 2024, and signed by Omolara Omofunde Duke, Director of the Financial Markets Department, detailed the process.
The CBN received a total of $1.18 billion in bids from 32 authorized dealer banks. However, bids amounting to $313.69 million from six banks were disqualified. Disqualified bids included those submitted after the 3:00 pm cut-off time and those that did not meet the required template standards.
The recent auction is part of the CBN’s broader efforts to address the high demand for foreign exchange among end users. The naira has fluctuated between N1,450 and N1,600 in recent months. The CBN set the cut-off rate for the auction at N1,495 per dollar to help stabilize the exchange rate.
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