CBN Disburses $148 Million to Dealers in Bid to Stabilize Naira Amid Continued Depreciation

In an effort to stabilize the foreign exchange market and counteract the ongoing depreciation of the naira, the Central Bank of Nigeria (CBN) has allocated $148 million to 29 authorized dealers.

This information was disclosed in a statement released on the CBN’s website on Friday. According to the statement, the sales took place on Monday, July 22, and Tuesday, July 23, 2024, with exchange rates ranging from ₦1,470.00 to ₦1,510.00 per US dollar.

This latest intervention follows the CBN’s recent disbursement of $122.67 million to 46 authorized dealers two weeks ago, aimed at enhancing market stability and reducing volatility.

Additionally, a week prior, the CBN had announced the sale of $20,000 to each Bureau De Change (BDC) operator at a rate of ₦1,450 per US dollar.

Despite these measures, the naira has continued to weaken, trading above ₦1,600 against the US dollar at the official market on Thursday.

The persistent decline in the naira’s value has heightened concerns among businesses and consumers, leading to increased import costs and mounting inflationary pressures.

The CBN’s interventions are crucial for injecting liquidity and restoring market confidence during these challenging times.

The statement read, “The Central Bank of Nigeria sold a total of $148,000,000.00 in the Nigerian Foreign Exchange market to authorized dealers on July 22 and 23, 2024. The sale was conducted at an exchange rate of ₦1,470.00 to ₦1,510.00 per US dollar.”