CBN Allocates $876m FX to Banks At N1495/$ In Recent Auction Amid Rising Demand

The Central Bank of Nigeria (CBN) on Wednesday confirmed that it sold Foreign Exchange (FX) to end users through a Retail Dutch Auction System (rDAS) on August 06, 2024, to reduce the demand pressure market, and promote price discovery. The central bank further disclosed that a total bid valued at $1.

18 billion was received from 32 Authorised Dealers Banks (ADBs), of which $876.

26 million from 26 banks qualified at a cut off rate of N1495/$. The apex bank also disclosed that bids from six banks valued at $313.

69 million were disqualified. The result of the retail FX sale to end users through rDAS, was communicated via a circular dated August 6, 2024, signed by CBN Director, Financial Markets Department, Dr. Omolara Omotunde Duke. The CBN noted that its intervention at the rDAS was in line with the objective of the bank to boost liquidity to the market as well as promote price discovery. The apex bank further explained that four banks submitted their bids after the cut off time of 3:00pm, while two banks did not provide bids in the template submitted, thus earning them a disqualification. The CBN added, “All bids with Form Q and unverifiable Form A and Form M on the trade portal were disqualified.”