Full List: Zenith 1st, First Bank 2nd, as Details of Transaction at CBN Retails Dutch Auction Emerge

• The Central Bank of Nigeria (CBN) conducted a Retail Dutch Auction System (RDAS) on August 6, 2024
• This is an effort to improve the foreign currency market's supply and promote price discovery
• Banks that obtained the most foreign exchange are Zenith Bank, First Bank, Access Bank and others

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

On August 6, 2024, the Central Bank of Nigeria (CBN) held a Retail Dutch Auction System (RDAS) in an attempt to enhance supply and encourage price discovery in the foreign exchange market.

Thirty-two authorised dealer banks submitted a total of $1.18 billion in bids for this auction.

Approximately 26 banks filed bids totaling $876.26 million at a rate of N1,495 per dollar to end users; bids totaling $313.69 million from six banks were rejected.

Read also

CBN displays new exchange rates for dollar, other currencies as naira gains across all forex markets

BusinessDay reported that this action was taken in reaction to the persistent pressure on the foreign exchange market (FX market), which has been made worse by unfulfilled end-user demand, especially as people and businesses in Nigeria continue to struggle with a lack of foreign currency.

The calls for bids were in the naira/US dollar (N/US$) currency pair for unmet foreign exchange demand backed by verifiable Forms A and M only, according to a recent document released by the apex bank on the outcome of the retail FX sales to end users through authorised dealer banks via the Retail Dutch Auction System (RDAS) by the Central Bank of Nigeria Held on August 06, 2024.

It said

“All bids were password protected and submitted through the dedicated email address provided by CBN between 09:00 a.m. and 3:00 p.m. Bids received after 3:00 pm were disqualified. Passwords for the bids were sent after the auction closed. The total bids received were valued at US$1,191,071,651.59.”

Read also

Nigeria successfully repays foreign debts as CBN reports rise in diaspora remittances

“After the collation, the Committee of Governors of the Central Bank of Nigeria approved a cut-off bid of N1495.00/US$ with the total successful bids of US$815,362.006.30 (Eight Hundred and Fifteen Million, Three Hundred and Sixty-Two Thousand and Six US dollars and Thirty Cents)."

The banks who obtained the most foreign exchange (FX) from the CBN in the most recent Retail Dutch Auction are listed below:

1. Zenith Bank – $267.86 million

2. First Bank of Nigeria (FBN) – $228.99 million

3. Access Bank – $79.09 million

4. Fidelity Bank – $43.61 million

5. GTBank (GTB) – $29.54 million

6. Standard Chartered (STANCHART) – $28.42 million

7. TAJ Bank – $19.1 million

8. Jaiz Bank- $16.71 million

9. Sterling Bank– $14.39 million

10. Union Bank – $13.26 million

11. Citi Bank – $12 million

12. Providus Bank – $11.45 million

13. Globus Bank – $11.07 million

14. Polaris Bank – $10.44 million

Read also

Good news as CBN slashes Customs rate for cargo clearance after crashing dollar in official market

15. Ecobank Transnational Incorporated (Ecobank) – $5.32 million

16. FBN Quest – $5.089 million

17. Keystone Bank – $4.63 million

18. Coronation Merchant Bank – $4.47 million

19. Lotus Bank – $4.04 million

20. Nova – $2.09 million

21. FSDH Merchant Bank – $1.99 million

22. Unity Bank – $616138.33

23. Signature Bank – $551,753.00

24. Parallex Bank – $548,052.17

25. Greenwich Merchant Bank – $17,217.40

26. Titan – $790.78

The six disqualified banks include:

1. United Bank of Africa (UBA) – $13.21 million (Late submission)

2. FCBM – $178. 65 (Late submission)

3. Stanbis IBTC (STANBIC) – $57.85 million (Late submission)

4. Wema Bank (WEMA) – $21.94 million (late submission)

5. SunTrust Bank (SUNTRUST) – $7.37 million (Late submission)

6. Rand Merchant Bank Nigeria (RAND) – No bid submitted

CBN sells cheap dollars to Nigerians

Legit.ng reported that the Central Bank of Nigeria (CBN) has sold a total of $876.26 million to end users whose forex bids were submitted by some 26 banks via the Retail Dutch Auction System on Wednesday, August 8, 2024.

Read also

CBN sells dollars cheaply again to banks as naira gains in official, black markets

This was disclosed by CBN in a statement posted on its website signed by Omolara Omofunde Duke, the Director of the Financial Markets Department.

CBN unveiled plans to implement the Retail Dutch Auction System to address the mounting unmet foreign exchange demand from end-users.

Source: Legit.ng