In a move to stabilize the foreign exchange market and address the recent depreciation of the naira, the Central Bank of Nigeria (CBN) has disbursed $148 million to 29 authorized dealers, the apex bank announced on Friday.
The sales, which took place on Monday, July 22 and Tuesday, July 23, 2024, were conducted at exchange rates ranging from 1,470.00 to 1,510.00 naira per US dollar. The authorized dealers included banks and Bureau de Change (BDC) operators.
This intervention comes two weeks after the CBN sold $122.67 million to 46 authorized dealers, aimed at increasing liquidity and reducing volatility in the country's foreign exchange market.
Additionally, the bank announced last week that it would sell $20,000 to each BDC at a rate of 1,450 naira per US dollar.
Despite these efforts, the naira has continued to depreciate against the US dollar, trading above 1,600 naira in the official market on Thursday.
In a statement, the CBN said, "The Central Bank of Nigeria sold a cumulative sum of US$148,000,000.00 in the Nigerian Foreign Exchange Market to Authorized Dealers on July 22 and 23, 2024. The sale of foreign exchange was to 29 Authorized Dealer banks at an exchange rate of 1470.00/US$1-1510.00/US$1."
The apex bank also revealed that it purchased $2 million from one authorized dealer bank at a rate of 1,505.00 naira per US dollar.
Financial analysts have expressed concerns over the recent trend of high foreign capital liquidation in the Nigerian Exchange, with N311.41 billion worth of investments withdrawn in the first half of 2024.
