The Central Bank of Nigeria (CBN) has injected $122.671 million into the foreign exchange (forex) market to boost dollar liquidity.
Unlike previous interventions where the apex bank funded Bureaux De Change (BDCs), the current dollar intervention went to 46 authorised dealers, made up of banks and other financial institutions.
The CBN recently not only withdrew the licences of 4,173 BDCs but unveiled new regulatory guidelines pegging minimum capital base for BDCs at N2 billion for Tier-1 and N500 million for Tier-2 operators.
However, the new move to deepen liquidity in the market through dollar injections aligns with the apex bank’s determination to promote stability and reduce market volatility in the foreign exchange market.
A statement signed by the Bank’s Director in charge of Financial Markets, Omolara Duke, disclosed that of the total sale, US$67,500,000.00 was sold to 27 authorised dealers, while the sum of US$2.5 million was bought from one authorised dealer on July 10, 2024.
The range of the bid for the July 10, 2024 sales was N1,480.0/US$-N1,500.0/US$, while the value date for the payments, going by the settlement cycle of two days (T+2), is July 12, 2024.
