The Central Bank of Nigeria (CBN) has sold $876.26 million to 26 qualified commercial banks at N1,495/$1 as the Retail Dutch Auction system returns.
The apex regulator in a statement signed by Dr Omolara Omotunde Duke, Director, Financial Markets Department disclosed the auction was done to reduce the demand pressure in the foreign exchange (FX) market and promote price discovery.
According to the CBN, the banks on Tuesday submitted their bids electronically using an approved template that contains details of forms A and M of all outstanding trade backed unmet Fx demand of their customers.
“The accounts of all end users were to be funded with the naira equivalent of their bids by Wednesday, 07 August 2024. The settlement for the successful bids is T+2, that is, Thursday, August 08, 2024.”
Of the 32 dealer banks who bidded for $1.18b, the CBN said 6 were disqualified for not meeting up with the deadline and 2 did not provide bids in their submitted templates.
“A total bid valued at US$1.18 billion was received from 32 Authorized Dealers Banks, of which, bids valued at US$876.26 million from 26 banks qualified, while bids valued at US$313.69 million from 6 (six) banks were disqualified. Of the disqualified bids, 4 (four) banks submitted their bids after the cut off time of 3:00 pm, while 2 (two) banks did not provide bids in the template submitted. All bids with Form Q, and unverifiable Form A and Form M on the Trade Portal were disqualified.”
The Bank approved a cut-off rate of N1495/US$ for the Auction and bids valued at US$876.26 million from 26 banks qualified.
Good production costs money and you can support what we do. Please find our details below👇🏾👇🏾👇🏾 Account name: MARKET ONLINE MEDIA Bank: UBA Acc No: 1026401930.
