Despite these sales, the naira only appreciated by 2.77 per cent to N1,541 at the official market but hit its lowest point in September closing at N1,700 per dollar at the parallel market.
The Central Bank of Nigeria has sold a total sum of $543.5million at the rate of N1540 and N1580 to authorised dealers banks between September 6 and September 30, 2024.
This was disclosed in a statement signed by the Director, Financial Markets Department, Omolara Duke, on Friday in Abuja, stating the sold FX is equal to N844.92billion in naira.
She mentioned that the sale was conducted via two-way quotes in the Nigerian Foreign Exchange Market with the aim of reducing observed market volatility driven by high demand for commodity importation and seasonal demand for FX.
She explained that the amount was sold to an average of 26 authorised dealer banks within 11 trading days.
Despite these sales, the naira only appreciated by 2.77 per cent to N1,541 at the official market but hit its lowest point in September closing at N1,700 per dollar at the parallel market.
The statement read, “The Central Bank of Nigeria sold a total of US$543.5m from September 06-30, 2024, to Authorised Dealer banks through two-way quotes at the Nigerian Foreign Exchange Market on 11 dealing days.
“The FX spot sales were to reduce observed market volatility driven by high demand for commodity importation and seasonal demand for FX. The value dates for all the transactions were T+2.”
The CBN director added that the release is to educate and provide guidance to the general public on the pricing of FX and the range of rates it sold to banks within the period.
“This press release is to educate and provide guidance to the general public on the pricing of FX by taking a clue from the range of rates at which FX was sold by the CBN to Authorised Dealer Banks.
“The CBN will continue to facilitate the supply of FX into the Nigerian Foreign Exchange Market as part of its holistic FX Management strategy,” the statement concluded.
The declining value of the naira has raised concerns among Nigerians, as it serves as a benchmark for the prices of essential goods in the country. Since Olayemi Cardoso became CBN Governor, the local currency has lost more than half its value in just one year.
However, the governor maintained that the bank had performed its best to strengthen the value of the naira at the exchange rate market.