CBN Wins ₦1,495 for $876.26 million in a retail auction.

About 26 banks put in bids totaling $876.26 million, which the Central Bank of Nigeria (CBN) sold to end customers.

The action aims to support the declining value of the naira, according to a circular issued by the apex bank on Wednesday.

The situation coincides with the naira being under pressure from summertime tourists and businesses looking to import items into the import-dependent country, as well as from seasonal demand for the dollar.

The circular states that 32 authorized dealer banks submitted bids totaling US$1.18 billion.

Six banks’ bids totaling US$313.69 million were deemed ineligible, while bids totaling US$876.26 million from 26 institutions qualified.

Two banks failed to submit proposals in the proper template, while four banks submitted bids after the 3:00 PM deadline, which resulted in their disqualification. Furthermore, all bids on the Trade Portal that included Form Q and the unverifiable Forms A and M were eliminated.

A cut-off rate of N1495/US$ for the Retail Dutch Auction was approved by the CBN.

To maintain transparency, the qualified bids and comprehensive results will be posted on the CBN website.

The successful bidders’ settlement is planned for Thursday, August 8, 2024.

The Central Bank of Nigeria, located in Abuja, announced in a circular to lenders last week that the sale was the result of “growing unmet foreign exchange demand” that has “continued to increase the demand pressure in the foreign exchange market, with adverse impact on the exchange rate of the naira.”