AGS NEWS – On August 6, 2024, the Central Bank of Nigeria (CBN) auctioned $876.26 million to end users through 26 commercial banks. This move aimed to bolster the ailing naira and enhance foreign exchange liquidity.

The auction process, part of a Retail Dutch Auction System, saw the naira appreciate against the US dollar, trading at N1,596.52/$ on Wednesday, up from N1,601/$ on Tuesday.

The CBN received bids totaling $1.18 billion from 32 authorized dealer banks but disqualified $313.69 million in bids from six banks for various reasons, including late submissions and incomplete bid templates. Successful bids will be settled on August 8, 2024.

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Omolara Omofunde Duke, Director of the Financial Markets Department, emphasized that the auction aimed to alleviate demand pressure and support price discovery.

The naira has traded between N1,450 and N1,600 in recent months, with a cut-off rate of N1,495/$ set for the auction.

Financial experts welcomed the intervention, noting its potential to stabilize the naira but warned that sustained success would require strategic fiscal policies and robust foreign reserves.