The Central Bank of Nigeria (CBN) said it had concluded plans to re-introduce the Retail Dutch Auction System (DAS) to mitigate foreign exchange demand for eligible transactions through authorised dealers.

The bank in a recent circular directed all deposit money banks (DMB) in the country to furnish it with a comprehensive list of outstanding legitimate foreign exchange demands from their customers latest August 6, 2024.

With the auction, set to take place on Wednesday, August 7, the bank said is aimed at mitigating the increasing demand pressure in the FX market and stabilise the exchange rate.

In the circular, the CBN said it observed a significant rise in unmet FX demands from end-users with banks, which has exacerbated the pressure on the FX market and adversely impacted the naira value.

“The CBN has noted growing unmet FX demand from end-users with banks. This has continued to increase the demand pressure in the FX market with adverse impact of the exchange rate of the naira. Authorised dealer banks, therefore, are to provide to the CBN, a legitimate list of all outstanding FX demand by end users,” the regular said.

It said this comprehensive list must include information such as the customer’s name, address, contact details, Bank Verification Number (BVN), account number, tax identification number (TIN), transaction type, Form A or Form M and Letter of Credit (LC) Number.

The directive mandates that all authorised dealers must submit the required information via email to [email protected] by Tuesday, August 6, 2024, using the provided template. Also, accounts of prospective customers must be naira-backed to qualify for participation in the auction, ensuring immediate settlement upon confirmation of bid acceptance by the CBN.