The Central Bank of Nigeria (CBN) in a bid to reduce demand pressure in the FX market and promote price discovery undertook the sale of foreign exchange (FX) to end users through a Retail Dutch Auction System (rDAS).
A total bid valued at $1.18 billion was received from 32 Authorized Dealer Banks, of which bids valued at $876.26 million from 26 banks qualified, while bids valued at $313.69 million from 6 banks were disqualified. Of the disqualified bids, 4 banks submitted their bids after the cut off time of 3:00 pm, while 2 banks did not provide bids in the template submitted.
In line with the objective of the CBN to boost FX liquidity to the market as well as promote price discovery, the apex bank approved a cut off rate of N1495/US$ for the Retail Dutch Auction where bids valued at $876.26 million from 26 banks qualified.