The Central Bank of Nigeria (CBN) has announced that it sold a total of $543.5 million at rates ranging from N1,540 to N1,580 to authorised dealer banks between September 6 and September 30, 2024. This figure is equivalent to N844.92 billion.

The CBN disclosed this information in a statement signed by Omolara Duke, Director of the Financial Markets Department, on Friday in Abuja.

Duke explained that the sales were conducted via two-way quotes in the Nigerian Foreign Exchange Market to reduce market volatility caused by high demand for commodity imports and seasonal FX demand.

“The amount was sold to an average of 26 authorised dealer banks within 11 trading days,” she stated.

Despite these sales, the naira only appreciated by 2.77 percent to N1,541 at the official market but fell to its lowest point in September, closing at N1,700 per dollar in the parallel market.

The statement read, “The Central Bank of Nigeria sold a total of US$543.5m from September 06-30, 2024, to Authorised Dealer banks through two-way quotes at the Nigerian Foreign Exchange Market on 11 dealing days. The FX spot sales were to reduce observed market volatility driven by high demand for commodity importation and seasonal demand for FX. The value dates for all the transactions were T+2.”

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Duke added that the release aims to educate and guide the public on FX pricing, reflecting the range of rates at which the CBN sold to banks during this period.

“The CBN will continue to facilitate the supply of FX into the Nigerian Foreign Exchange Market as part of its holistic FX Management strategy,” she concluded.

The declining value of the naira has raised concerns among Nigerians, as it affects the prices of essential goods in the country. Since Yemi Cardoso took over as CBN Governor, the local currency has lost more than half its value within a year. However, Cardoso has maintained that the bank has been striving to strengthen the naira’s value in the exchange rate market.

During the last Monetary Policy Meeting, Cardoso noted a correlation between monthly disbursements from the Federation Account Allocation Committee (FAAC) and FX demand pressures. He stated that the bank would monitor future disbursements by FAAC to assess their impact on prices.

Additionally, CBN checks revealed that foreign reserves increased by almost 5 percent in September, rising from $36.24 billion at the start of the month to $38.058 billion by September 30, 2024.

A breakdown of the sales showed that the bank sold $39 million on September 6 at rates between N1,580 and N1,605 to 26 banks. On September 9, it sold $66 million at rates of N1,570 to N1,585 to 23 banks. The amount sold increased to $77 million on September 11 at rates of N1,540 to N1,575 to 31 banks. Other sales included $46 million on September 13 at rates of N1,540 to N1,575, $24 million on September 18 at rates of N1,530 to N1,540, and various amounts on subsequent dates, culminating in $56 million sold on September 30 between rates of N1,530 and N1,580.