The Central Bank of Nigeria (CBN) says it sold $543.5 million to authorised dealer banks between September 6 and September 30, 2024.

The CBN disclosed this in a statement issued by its Director of Financial Markets Department, Omolara Duke, on Friday, October 4.

Duke noted that the transaction was through a two-way quote at the Nigeria Foreign Exchange Market (NFEM) on 11 dealing days.

Duke said the spot sales were to reduce observed market volatility driven by high demand for commodity imports and seasoned demand for foreign exchange.

She said the value date for all the transactions was T+2.

T+2 refers to the settlement dates of security transactions that occur on a transaction date plus two days.

The CBN director stated: “This statement is to educate and provide guidance on the general public the pricing of forex.

CBN unveils electronic forex matching system to curb speculation

“This is by taking a clue from the range of rates at which fx was sold by the CBN to authorised dealers.

“The CBN will continue to facilitate the supply of foreign exchange into the NFEM as part of its holistic forex management strategy.”

The CBN had earlier announced the introduction of an Electronic Foreign Exchange Matching System (EFEMS) for Foreign Exchange (FX) transactions in NFEM.

Duke said the new system would help to enhance governance, transparency, and facilitate a market-driven exchange rate that would be accessible to the public.

She stated: “This development is expected to reduce speculative activities, eliminate market distortions, and give the CBN improved oversight capabilities to effectively regulate the market.

“Authorised dealers will subsequently conduct all foreign exchange transactions in the interbank Fx market on the EFEMS approved by the CBN where transactions will be reflected immediately.”

Duke said there would be a two-week test run in November, adding that the apex bank would publish real-time prices when the EFEMS becomes operational.

The Star