The Central Bank of Nigeria (CBN) Friday provided the breakdown of $543.5 million Forex Spot sales to authorized dealer banks in September.
The move aligns with the apex bank’s moves to promote transparency and accountability in the sales and management of forex within the economy.
The report, signed by CBN Director, Financial Markets Department, Omolara Duke, showed that FX sales were carried out in 11 days within the month at the rate of N1,530 to N1,605 to dollar.
The first spot sales of $39 million was conducted on September 6 at the rate of N1,580 to N1,603 to dollar. This was followed by $66 million sales on September 9; $77 million on September 11 and $46 million on September 13th.
After that, the next sales date was on September 8, when $24 million was sold followed by $28 million sales on September 19. September 20 sales stood at $31 million; September 23, $17.5 million; September 26, $80 million; September 27, $79 million and finally on September 30, $56 million.
Duke explained that the funds were sold to authorized 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,” she said.
She said the report to educate and provide guidance to the general public on the pricing of FX by taking a clue from the range of rates at which FX was sold by the CBN to authorized 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,” she said.
As part of the new policy direction of the apex bank within the week, approved a new forex plan that will allow it collaborate with Financial Markets Dealers Association of Nigeria (FMDA) to reduce speculative activities in the market.
The Electronic Foreign Exchange Matching System (EFEMS) for Foreign Exchange (FX) transactions in the Nigerian Foreign Exchange Market (NFEM) will take effect on December 1, 2024. The policy provided a two-weeks test run in the month of November 2024
According to her, the new policy provides that authorised dealers would subsequently conduct all foreign exchange transactions in the interbank Fx market on the Electronic Foreign Exchange Matching System approved by the CBN where transactions will be reflected immediately.
“The new system is expected to enhance governance, transparency and facilitate a market- driven exchange rate that will be accessible to the public. This development is expected to reduce speculative activities, eliminate market distortions and give the CBN improved oversight capabilities to effectively regulate the market,” Duke said.
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