The Central Bank of Nigeria (CBN) conducted the sale of $876.26 million to end users through bids submitted by 26 banks, as indicated in a circular released by the apex bank on Wednesday.
The move aims to bolster the declining value of the naira amidst seasonal demand for the dollar from summer tourism and businesses importing goods into the import-dependent nation.
According to the circular, a total of US$1.18 billion in bids was received from 32 authorized dealer banks. Out of this, bids valued at US$876.26 million from 26 banks met the qualifying criteria, while bids valued at US$313.69 million from six banks were disqualified for various reasons such as late submission and failure to provide bids in the required format.
The CBN approved a cut-off rate of N1495/US$ for the Retail Dutch Auction, and the results along with qualified bids will be published on the CBN’s website for transparency. Settlement for the successful bids is scheduled for Thursday, August 8, 2024. The sale is a response to the “growing unmet foreign exchange demand” which has increased pressure on the foreign exchange market and impacted the exchange rate of the naira, according to a circular issued by the Abuja-based Central Bank of Nigeria to lenders.
