In a significant move to manage the rising demand for dollars and stabilize the naira, the Central Bank of Nigeria (CBN) conducted a Retail Dutch Auction on Wednesday. During this auction, the CBN sold a total of $876.26 million at a cut-off rate of N1495 per dollar.

This auction was held under the Retail Dutch Auction System, which is designed to help manage the distribution of foreign exchange and address supply-demand imbalances in the forex market. The CBN received bids totaling $1.18 billion from 32 authorized dealer banks. However, only 26 banks successfully met the auction’s requirements and had their bids accepted.

The remaining six banks were disqualified due to several issues. Four of these banks submitted their bids after the 3:00 pm deadline, while two others did not adhere to the required submission template. Additionally, bids with incorrect or unverifiable Form Q, Form A, and Form M on the Trade Portal were also rejected.

This auction follows recent fluctuations in the forex market, where the naira has shown some improvement against the dollar. As of Wednesday, the naira had appreciated to a rate of N1601 against the dollar, marking two consecutive days of strengthening.

The CBN’s action in this auction is part of its broader strategy to control the volatility in the foreign exchange market and ensure that the naira remains stable amidst growing dollar demand.