Nigeria’s Central Bank Sells $876.26 Million to Banks at Cut-Off Rate of N1495 Per Dollar

The Central Bank of Nigeria (CBN) has announced the sale of $876.26 million to end users from 26 successful banks at a cut-off rate of N1495 per dollar. This comes as the bank commences its latest Retail Dutch Auction System (RDAS).

According to a statement issued by the CBN’s Director of Financial Markets Department, Omolara Duke, the bank received a total of $1.18 billion in bids from 32 authorized dealer banks. However, six banks were disqualified for not meeting the deadline and other requirements.

The CBN approved a cut-off rate of N1495 per dollar for the RDAS, where bids valued at $876.26 million from 26 banks qualified. On the other hand, bids valued at $313.69 million from six banks were disqualified. Of the disqualified bids, four banks submitted their bids after the cut-off time of 3:00 pm, while two banks did not provide bids in the template submitted. All bids with Form Q and unverifiable Form A and Form M on the Trade Portal were also disqualified.

This development comes amid a dollar demand spike, which has led to a series of measures by the CBN to stabilize the foreign exchange market. The Nigerian currency, the Naira, has recorded two consecutive appreciations against the Dollar, closing at N1601 on Wednesday.

The CBN’s move to implement the RDAS is aimed at providing a more transparent and efficient foreign exchange market, ensuring that authorized dealers and end-users have access to foreign exchange at a more competitive rate.