CBN Introduces Measures To Stabilise Foreign Exchange Market
The Central Bank of Nigeria (CBN) has assured Nigerians of its commitment to addressing the demand pressure on the naira and stabilise the foreign exchange market,(FX).
The apex bank gave the assurance in a statement issued on Friday night by Dr Omolara Omotunde Duke, its Director of Financial Markets Department.
The CBN said it had started selling foreign exchange on a regular basis through Authorised Dealer Banks and licensed Bureaux De Change (BDCs) as a response to the current fluctuations in the foreign exchange market.
It said the exchange rate fluctuations were primarily caused by the demand pressure coming from corporate entities and the seasonal increase typical during the summer period.
The apex bank said by implementing regular sales of foreign exchange, the CBN aimed to stabilise the market and ensure smoother transactions for both businesses and individuals involved in foreign exchange activities.
It said it sold a total of US$106,500,000.00 to 29 authorised dealer banks on Thursday, July 18 and Friday, July 19, 2024.
These transactions took place within an exchange rate range of N1,498.00/US$1 to N1,530.00/US$1. Additionally, the CBN purchased US$9,500,000 (Nine Million and Five Hundred Thousand Dollars) from four authorized dealer banks at rates between N1,510.00/US$1 and N1,550.00/US$1. All these transactions are marked for settlement on July 19, 2024.
The Central Bank also expressed its commitment to closely monitor compliance with existing trading rules and regulations by authorized dealer banks in the bid to promote ethical conduct and ensure stability in the foreign exchange market.
It advised members of the public to direct their foreign exchange demands to their respective banks and BDC operators, adhering to prevailing market regulations.
CBN promised that with the regular sale of foreign exchange and ongoing monitoring of trading practices, it would meet the demand pressure, foster stability, and sustain a well-functioning foreign exchange market.
