CBN sold $543.5 million FX to banks in September

The CBN said the FX spot sales was to reduce observed market volatility driven by high demand for commodity importation and seasonal demand for FX.

The Central Bank of Nigeria (CBN) said it sold a total of $543.5 million to authorised dealer banks between 6 and 30 September.

The bank said the sales occurred on 11 dealing days through two-way quotes at the Nigerian Foreign Exchange Market (NFEM).

In a statement on Friday, signed by the Director of the Financial Markets Department, Omolara Duke, the CBN said the FX spot sales was to reduce observed market volatility driven by high demand for commodity importation and seasonal demand for FX.

“The Central Bank of Nigeria (CBN) sold a total of US$543.5 million (Five Hundred and Forty-Three Million, Five Hundred Thousand US Dollars Only) from September 06-30, 2024, to authorised dealer banks through two-way quotes at the Nigerian Foreign Exchange Market (NFEM) on 11 dealing days.

“The FX spot sales was 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 statement said.

The apex bank said the statement is to educate and provide guidance to the general public on the pricing of FX by taking a clue from the range at which FX was sold by CBN to authorised dealer banks.

“The CBN will continue to facilitate the supply of FX into the Nigerian Foreign Exchange Market (NFEM) as part of its holistic FX management strategy,” it said.