CBN Moves To Crash Dollar, Sells Over $122m to 46 Authorised Dealers, New Exchange Rate Emerges

• CBN has sold over $122 million to 46 authorised dealers to stabilise the naira after recent heavy depreciation
• The naira had weakened to over N1,500 both at the official and on the parallel market in recent days
• The intervention is part of CBN’s efforts to maintain forex market liquidity and support the naira value

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Central Bank of Nigeria (CBN) has resumed intervention in the foreign exchange (FX) market to stabilise the value of Nigerian currency.

The intervention, conducted over two days, saw the apex bank sell $122.67 million to 46 authorised dealers across the country.

The intervention was disclosed in a statement released by Omolara Duke, director of financial markets at the CBN.

Read also

CBN gives new exchange Rates to clear goods from Nigeria’s ports as naira gains in official market

According to Duke, the apex bank sold US$67.5 million to 27 authorised dealers on July 10, 2024, at an exchange rate ranging from N1,480.00 to N1,500.00 per dollar.

The Nation reports that on July 11, 2024, the CBN sold US$55.17 million to 19 authorised dealers at a fixed rate of N1,540.00 per dollar.

CBN intervention in the FX markets

The CBN noted that the funds injected into the market are expected to be utilised exclusively for trade-related transactions, with authorised dealers required to report such transactions within 72 hours.

The apex bank reiterated its commitment to maintaining stability in the foreign exchange market through continuous interventions and monitoring of market activities.

This latest intervention by the CBN is part of its ongoing efforts to manage the foreign exchange market as the naira continues to struggle in the official and black markets.

Read also

Naira crushed again in official, parallel markets as dollar inflow improves

Naira new exchange rate

According to data from the FMDQ Securities Exchange, the value of the domestic currency closed at N1,554.65/$1 against the US dollar on Thursday, July 11.

Meanwhile, at the black market, traders sold the dollar at an exchange rate of N1,560/$1.

The exchange rates for the British pound sterling were N1,951.83/£1 and N1,645.39/€1 for the euro, respectively.

CBN stops BDC funding

Earlier, Legit.ng reported that the CBN reportedly stopped funding for Bureau de Change Operators.

The move aims to test CBN’s reform template and minimise quick fixes in the FX market.

The CBN is reportedly reviewing significant policies to strengthen the implementation or tweak its reforms.

Source: Legit.ng