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).
In the newly introduced system last week, a total bid valued at $1.18 billion was received from 32 Authorized Dealer Banks, of which bids valued at $876.26 million from 26 banks.
In line with the objective of the CBN to boost FX liquidity to the market as well as promote price discovery, the apex bank approved a cut off rate of N1495/US$ for the Retail Dutch Auction where bids valued at $876.26 million from 26 banks qualified.