Naira decline: CBN disburses $148m to 29 authorised dealers

• Published On: 26 July 2024 at 16:59

The Nigerian Central Bank has allocated $148 million to 29 authorised dealers in an effort to calm the foreign exchange market following the naira's recent fall.

According to a statement issued on the apex bank's website on Friday, the transactions were made to dealers on Monday, July 22 and Tuesday, July 23, 2024, at an exchange rate of N1470.00/$1 and N1510.00/$1, according to The Punch.

This follows the CBN's previous sale of $122.67 million to 46 authorised dealers in an effort to reduce volatility and improve market stability.

Furthermore, it announced a week ago that each BDC will receive $20,000 at a rate of N1,450 per $1.

Despite these steps, the naira continued to fall, trading above N1,600 per dollar in the official market on Thursday.

The announcement from the CBN read: "The Central Bank of Nigeria sold a cumulative sum of $148,000,000.00 in the Nigerian Foreign Exchange market to authorised dealers on July 22 and 23, 2024."

"The sale of foreign exchange was to 29 authorised dealer banks at an exchange rate of 1470.00/US$1-1510.00/US$1."

Recall that the CBN made its initial attempt in February 2023, selling $20,000 to each BDCS at a rate of N1,301 per dollar. In the second effort, the bank decreased the allocation by 50% and sold FX at a cost of N1,251/$1.