Afrigather The Central Financial institution of Nigeria (CBN), on Friday, disclosed that it offered a complete of $543.5 million to authorised supplier banks within the Nigerian Overseas Alternate Market (NFEM) between September 6 and September 30, 2024.
The transfer, executed over 11 buying and selling days, was a part of the financial institution’s efforts to handle market volatility and tackle heightened demand for international trade, notably for commodity importation.
Throughout this era, the CBN facilitated gross sales by means of two-way quotes, providing FX at charges starting from N1,530 to N1,605 per greenback, relying on the transaction day. The most important sale occurred on September 26, 2024, when the CBN offered $80 million at charges between N1570 and N1580 per US greenback.
The FX transactions carried out through the time have been set on a price date of T+2, which means settlement occurred two days after the transaction.
The CBN’s intervention was geared toward curbing market volatility spurred by the numerous demand for FX, particularly for commodity imports. As Nigeria continues to navigate financial challenges, together with pressures on its foreign money, the naira, the financial institution is concentrated on a technique of making certain ample FX provide to stabilise the market.
In an announcement, Omolara O. Duke, director of the CBN’s Monetary Markets division, emphasised the significance of the spot gross sales as a part of the broader FX administration technique. “The CBN will proceed to facilitate the availability of FX into the Nigerian international trade market to make sure market stability and meet the nation’s international trade wants,” Duke mentioned.
The CBN hopes that by transparently sharing the charges at which FX was offered to authorised sellers, the market will achieve insights into truthful pricing, serving to to information future transactions.
The measure is predicted to assist stabilise the naira and help the federal government’s efforts to handle inflation and international trade demand successfully.
For additional particulars on the FX gross sales, the CBN has made further data out there by means of its official channels.
