The Central Bank of Nigeria (CBN) conducted a Retail Dutch Auction on August 6, 2024, where nine companies purchased a combined total of $25.76 million to meet their loan repayment obligations.
This auction is a critical part of the CBN’s strategy to reduce the demand pressure in the foreign exchange (FX) market and promote price discovery amid Nigeria’s ongoing economic challenges.
Loan repayments made up only about 3% of the $876.26 million sold by the CBN during the auction.
The Central Bank of Nigeria (CBN) sold $876.26 million at N1,495/$1 to 26 qualified banks in its latest Retail Dutch Auction.
According to a statement from the CBN, a total bid of $1.18 billion was received from 32 dealer banks. However, bids from six banks were disqualified, as four banks did not meet up with the deadline while two did not provide bids in their submitted templates.
Naijaonpoint earlier reported that Dangote Group’s subsidiaries purchased at least $105.33 million in successful foreign exchange (FX) bids in the latest Retail Dutch Auction conducted by the CBN.
This allocation represents about 13% of the total amount that the CBN distributed among qualified banks.