In a move to stabilize the foreign exchange market, the Central Bank of Nigeria (CBN) has sold a total of $543.5 million to authorized dealer banks.
This significant injection of forex into the market is aimed at reducing volatility and promoting market stability.
The sales were made through two-way quotes at the Nigerian Foreign Exchange Market (NFEM) within 11 dealing days, according to the CBN’s director of financial markets, Omolara Duke. The value dates for all the transactions were T+2.
The CBN’s move is a welcome step to address the high demand for commodity importation and seasonal demand for FX, which has been driving market volatility.
This move is part of the CBN’s holistic FX Management strategy to facilitate the supply of FX into the Nigerian Foreign Exchange Market. With this significant injection of forex, the CBN has demonstrated its commitment to promoting market stability and supporting economic growth.
The impact of the CBN’s move on the forex market is yet to be fully seen, but experts believe it will help reduce volatility and stabilize the exchange rate.
The sales were made at a time when the exchange rate had closed at N1,554.65/$1, the lowest level since March 2024.
