The Central Bank of Nigeria (CBN) sold around $122.67 million to 46 authorized dealers to enhance stability and reduce volatility in the foreign exchange market.
According to a statement made by the Bank’s Director in charge of Financial Markets, Dr. Omolara Duke, $67,500m was sold to 27 dealers, with US$2.5m purchased from one authorized dealer on July 10, 2024.
The bid range for July 10, 2024 sales was ₦1,480.0/US$-₦1,500.0/US$. The value date for payments is July 12, 2024, based on the two-day settlement period.
On July 11, 2024, $55,171m was sold to 19 licensed dealers at ₦1,540.0/US$, with no FX purchased. The spot sale payments have a value date of July 15, 2024.
The apex bank asked all licensed dealers to ensure that foreign exchange purchases from the CBN are only used for trade-backed transactions, which must be recorded within 72 hours.
While emphasizing that the CBN supplies foreign exchange to the Foreign Exchange market to promote liquidity through FX spot sales to authorised Dealers utilizing two-way quotes, the bank promised that the FX market would remain stable.
On Thursday, Channels Television reported an increase in Nigeria’s external reserves to $35.05 billion as of July 8, 2024.
According to CBN data on external reserves, as of May 30, 2023, the reserves were $35.09 billion, approximately 14 days before the implementation of the foreign exchange (FX) unification policy in June.
However, when the CBN announced the FX unification strategy, the external reserves decreased to $34.66 billion.
From July to December 2023, the reserves varied in the $33 billion range.
This year, the reserves fell to a low of $32.11 billion on April 19, 2024, according to data.
The central bank Governor attributed the loss in reserves on debt repayments and other financial obligations, not measures to preserve the naira.
Analysed According to CBN data, the exchange rate increased in the last three weeks of June, exceeding $34 billion for the first time since April. The reserves continued to expand in July, hitting their greatest level in the previous year.
According to CBN data, overseas reserves have increased by $2.94 billion in less than three months from their low of $32.11 billion under Tinubu in April.
The CBN has stated that it intends to double the diaspora’s remittance inflows this year by ensuring a constant flow of foreign cash into the country.
