The Central Bank of Nigeria (CBN) has disclosed that it sold $543.5 million to authorized dealer banks between September 6 and 30, 2024. The sale aimed to reduce market volatility driven by high demand for commodity importation and seasonal FX demand.
According to the CBN’s Director of Financial Markets Department, Omolara Duke, the FX spot sales were conducted via two-way quotes in the Nigerian Foreign Exchange Market. The sales totaled N844.92 billion in naira, with an average of 26 authorized dealer banks participating in the 11 trading days.
Despite the intervention, the naira only appreciated by 2.77% to N1,541 at the official market but hit its lowest point in September at N1,700 per dollar at the parallel market.
CBN Governor Yemi Cardoso maintained that the bank has performed its best to strengthen the naira’s value. He noted a correlation between monthly disbursements from the Federation Account Allocation Committee and FX demand pressures.
Foreign reserves increased by almost 5% in September, rising from $36.24 billion to $38.058 billion. The CBN’s sales ranged from $17.5 million to $80 million on various trading days.
The decline of the naira has raised concerns among Nigerians, as it affects prices of essential goods. Since Cardoso became CBN Governor, the naira has lost over half its value in one year.
