The Central Bank of Nigeria (CBN) has auctioned $876.26 million to 26 qualified banks through the Retail Dutch Auction System (RDAS).
The auction, conducted on Tuesday, August 6, 2024, aligns with the apex bank’s objectives to alleviate demand pressure and support price discovery in the FX market.
The CBN’s Financial Markets Department, led by Director Omolara Omofunde Duke, announced the results in a statement on Wednesday.
According to the statement, a total of $1.18 billion in bids was received from 32 authorized dealer banks. However, bids valued at $313.69 million from six banks were disqualified due to late submissions and incorrect bid templates.
This latest RDAS initiative comes in response to the mounting unmet foreign exchange demand from end-users and aims to stabilize the naira’s exchange rate, which has fluctuated between N1,450 and N1,600 in recent months. The CBN has set a cut-off rate of N1495/$ for this auction.
Last week, the CBN unveiled plans to implement RDAS as part of its broader strategy to address FX market pressures and ensure market stability.
