Access Bank, First Bank, 7 Others Buy $29.5 Million From CBN at N765 to a Dollar at FX Auction

• The Central Bank of Nigeria has sold $29.5 million to nine banks at an FX auction
• The nine banks bought the FX at different rates as the CBN finally settled for N756 at the I&E window
• The highest rate was sold at N770 to a dollar with about $5 million, while the lowest exchange rate was N760 to a dollar

The Central Bank of Nigeria (CBN) supplied about $29.5 million at an FX auction on Thursday, June 21, 2023, as nine banks bid N765 and N755 at the I&E window.

But the naira depreciated by 0.25% on Thursday, June 22, 2023, at the Investors and Exporters window as the dollar was quoted at N765.13 against the dollar as against N763.17 quoted on Wednesday, June 21, 2023, according to data from the FMDQ.

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Nigerians' demand for dollars increases

BusinessDay reports that traders attributed the naira depreciation to increased demand for the dollar from persons who want to travel for education, tourism, and business.

According to reports, the nine banks which bought the forex from CBN include First Bank, Ecobank, Access Bank, Standard Chartered, Wema Bank, FBN Merchant Bank, Coronation Bank, and Globus Bank.

The banks bought the FX at different prices in line with the auction rules.

The highest rate was sold at N770 to a dollar, with about $5 million, while the lowest exchange rate was N760, with about $9.5 million sold at that amount.

Analysts suggest controlled naira float

The development shows analysts’ suspicions that the CBN intervention suggests a managed naira float.

According to the CBN Deputy Governor, Kingsley Obiora, no country has a free float.

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Obiora said:

“There is no country in the world, even the US, that has a completely free float,”

FG pledges more dollar supply To stabilize the naira as it exchanged for N800 to a dollar

Legit.ng reported that the Nigerian government had announced plans to inject some foreign exchange into the economy to strengthen the value of the naira as market forces stabilize.

Dele Alake, Special Adviser to President Bola Tinubu, revealed the plans on Wednesday, June 21, 2023, while speaking with reporters in Paris.

Alake’s statement comes as the naira is experiencing a remarkable recovery against the dollar in the parallel market.

Source: Legit.ng