The Central Bank of Nigeria (CBN) sold a total of $543.5 million in the Nigerian foreign exchange market (NFEM) to authorized dealer banks between September 6 and September 30, 2024. This sale occurred over 11 trading days, according to a statement from Omolara Duke, Director of the Financial Markets Department at CBN.
The CBN stated, “The FX spot sales aimed to reduce observed market volatility driven by high demand for commodity imports and seasonal FX needs.” All transactions had a value date of T+2.
A detailed breakdown reveals that on September 6, the CBN sold $39 million at rates between N1,580 and N1,605 per dollar. Subsequent sales included $66 million on September 9 at N1,570 to N1,585, $77 million on September 11 at N1,540 to N1,575, and $46 million on September 13 at the same range.
Further sales included $24 million on September 18 at N1,530 to N1,540, $28 million on September 19 at N1,540 to N1,555, $31 million on September 20 at N1,540 to N1,545, and $17.5 million on September 23 at N1,540.
Significant transactions continued with $80 million sold on September 26 at N1,570 to N1,580, $79 million on September 27 at N1,530 to N1,580, and $56 million on September 30 at N1,540.
The CBN emphasized that this information aims to educate the public on foreign exchange pricing, highlighting the range of rates at which FX was sold. The bank reaffirmed its commitment to facilitating FX supply in the NFEM as part of its comprehensive FX management strategy.
In comparison, the CBN reported that on August 11, it sold $876.26 million at N1,495 per dollar, while two months prior, it had sold $148 million in the NFEM to authorized dealer banks between July 22 and 23.
With these efforts, the CBN aims to stabilize the naira and enhance market liquidity, crucial for micro, small, and medium enterprises (MSMEs) relying on stable foreign exchange rates for their operations.
