By Emma Ujah, Abuja Bureau Chief 

The Central Bank of Nigeria (CBN) has stepped up its interventions in the foreign exchange market with a view to ensuring the stability of the naira exchange rate.

The banks sold $106.5 million to authorised dealers between Thursday and yesterday, according to a circular by Dr. Omototla Duke, Director of Financial Markets Departments, last night.

It read in full, “The Central Bank of Nigeria wishes to inform the general public that recent movements in the foreign exchange market are driven largely by demand pressure from corporate entities and the expected seasonal uptick during the summer period.

“The CBN therefore wishes to assure the general public that it has commenced a regular sale of foreign exchange through authorised dealer banks and licensed Bureau de Change (BDCs) to improve supply in the foreign exchange market in line with its price stability mandate and its commitment to ensuring a well-functioning and liquid market.

“Over the next few weeks,  the CBN will continue to support various segments of the official markets with liquidity. 

“In line with the above, the CBN on Thursday, July 18, and Friday, July 19, 2024, sold a total sum of $106.500 million to 29 authorised dealer banks between an exchange rate range of N1, 498/$1 and N1, 530/$1.

“In addition, it bought $9.5 million from 4 authorised dealer banks at rates between N1,510/$1 and N1,550/$1.

“The value date for all transactions is July 19, 2024.

“Additionally, the CBN will continue closely monitoring commence with existing trading rules and regulations by authorised dealer banks to promote ethical conduct and support the drive to achieve stability in the foreign exchange market. 

“Therefore, the general public is advised to direct their foreign exchange demand to their banks and BDC operators in accordance with prevailing market regulations.”