The Central Bank of Nigeria (CBN) has sold a total of $148 million to 29 authorized dealer banks to stabilize the foreign exchange market and curb the recent decline of the naira. The sales were made on July 22 and 23, 2024, at exchange rates ranging from ₦1,470 to ₦1,510 per US dollar.
This intervention comes on the heels of two previous CBN actions aimed at promoting market stability:
- Two weeks ago, the CBN sold $122.67 million to 46 authorized dealers.
- One week ago, the CBN announced it would sell $20,000 to each Bureau de Change (BDC) operator at a rate of ₦1,450/$1.
However, despite these measures, the naira has continued to depreciate against the US dollar, trading above ₦1,600 at the official market on Thursday. The CBN’s statement emphasized that the $148 million in foreign exchange was sold to the 29 authorized dealer banks.
The ongoing volatility in the foreign exchange market and the naira’s decline underscore the challenges faced by the CBN in managing Nigeria’s currency. While the bank has taken steps to inject liquidity and support the naira, the currency has remained under pressure, likely due to factors such as reduced oil revenues, high inflation, and economic uncertainty.