CBN offers $876 million to FX markets, pledges more liquidity
The Central Bank of Nigeria has offered $876 million to the foreign exchange markets to fulfil bids submitted by customers at an auction concluded on Wednesday.
This was announced in a statement by CBN’s spokeswoman, Hakama Sidi-Ali. According to her, it is the latest testament to the apex bank’s commitment to support the FX market by enhancing liquidity when necessary.
“In line with its pledge to provide transparent access to foreign exchange for all legitimate customers, the CBN’s leadership has introduced an additional mechanism.
“This is through the Retail Dutch Auction System (RDAS) to directly facilitate fx sales to end users. This approach aims to foster a more transparent market, reducing information asymmetry and supporting price discovery.
”It complements the two-way quote system deployed over the past few months to enhance liquidity in the interbank market. Through it, more than 305 million dollars of foreign exchange has been sold to authorised dealers in the last three weeks,” the CBN statement said.
It noted that the CBN’s policy objectives yielded tangible results and bolstered market confidence.
The apex bank also mentioned that net foreign exchange flows rose to $25.4 billion between January and June, marking a 55 per cent year-over-year increase.
She said this growth had been driven by a rise in capital importation, which reached six billion dollars in June, and record inflows from diaspora remittances through formal channels.
It added, “The foreign exchange market is also showing signs of improvement and increased depth, with more robust and diversified sources of liquidity contributing to the sustained convergence of exchange rates across all segments of the market.
“The official market recorded a turnover of 43 billion dollars in customer transactions by the end of July, with CBN-supplied liquidity representing less than five per cent of total market activities.
“The CBN remains steadfast in its commitment to fostering a transparent, market-driven foreign exchange market. It will also continue to strengthen the market’s capacity to meet the needs of all legitimate participants.”
(NAN)
We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.
More from Peoples Gazette
Agriculture
FG tasks ECOWAS on leveraging financing strategies for agroecology
The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices
Politics
Katsina youths pledge to deliver over 2 million votes to Atiku
“Katsina State is Atiku’s political base because it is his second home.”
Agriculture
FG’s fertiliser distribution boosts farmers’ productivity in Kano: AFAN
The federal government’s fertiliser and farm-input interventions have improved farmers’ productivity and livelihoods in Kano, says AFAN.
Economy
Scrap scavengers seek stronger recycling policies in Lagos
Scrap scavengers in Lagos have called for stronger implementation of recycling policies to improve livelihoods and create cleaner communities.
Politics
Akwa Ibom: PDP governorship candidate urges youths to prioritise education
The Peoples Democratic Party governorship candidate in Akwa Ibom, Emem Coffie, has urged Nigerian youths not to abandon education in pursuit of quick success.
Economy
BPP boss advises civil servants on post-retirement plan
Adebowale Adedokun, director-general of the Bureau of Public Procurement, has advised civil servants to develop business plans for life after retirement.
States
Two killed in stampede as Gov Bago allegedly distributes cash in Government House
At least two people, including a child, have been killed in a stampede during an event involving Governor Umar Bago in Minna. Several others were injured.
Economy
Summit seeks more role for women in economic decisions, influence
The Executive Women’s Summit has called for a shift from gender representation to greater participation, influence and economic authority for women in corporate organisations.
