CBN Sells $84m Local Banks at N1,640 Spot Rate
To bolster liquidity levels in the autonomous foreign exchange market, the Central Bank of Nigeria (CBN) sold $84 million to authorised dealer banks at the FX auction conducted yesterday.
Despite the move to defend the local currency, the naira plunged to N1650 the same day. Analysts said the amount was insufficient to influence exchange rate direction. MarketForces Africa reported that Yemi Cardoso-led CBN has shown little interest in backing the naira with significant FX sales to authorised dealers.
Data showed the FX intervention sales slowdown down significantly in October, 2024. Total FX sales declined by 30% month on month in October, MarketForces Africa reported.
Recall that the Apex Bank announced it would test drive its automated FX trading platform for two weeks in November. The market is awaiting further details as naira dipped to N1650.
Analysts revealed that the Apex Bank conducted FX market intervention sales on Thursday, selling $84 million to deposit money banks between the rate of N1,630.00 – N1,640.00.
With huge spending plan for 2025, Nigeria plans to issue Eurobonds and Islamic sukuk bonds as part of the debt portion for funding this year’s budget, according to Finance Minister Wale Edun. #CBN Sells $84m Local Banks at N1,640 Spot Rate CBN Defends Naira with $39m in Forex Market
