The Central Bank of Nigeria (CBN) on Friday said recent movements in the foreign exchange market were driven largely by demand pressure from corporate entities and the expected seasonal uptick during the summer period.

In a statement by Dr. Omolara Omotunde Duke,  its Director, Financial Markets Department, the CBN assured that it has commenced a regular sale of foreign exchange through Authorized Dealer Banks and licensed Bureaux De Change (BDCs). In a move it believes would improve supply in the foreign exchange market in line with its price stability mandate, the apex bank reiterated its commitment to ensuring a well-functioning and liquid market.

Over the next few weeks, Dr. Duke stressed that the CBN will continue to support various segments of the official markets with liquidity, which is why it sold a total US$106.5m to 29 Authorized Dealer banks.

The sale was consummated between an exchange rate range of N1,498/US$1 and N1,530/US$1, just as it bought US$9.5m from four Authorized Dealer banks at rates between N1,510/US$1 and N1,550/US$1.

The value date for all the transactions, the CBN  said, is July 19, 2024, adding that it will continue to “closely monitoring compliance with existing trading rules and regulations by authorized dealer banks to promote ethical conduct and support the drive to achieve stability in the foreign exchange market.”

She urged members of the public “to direct their foreign exchange demand to their banks and BDC operators in accordance with prevailing market regulations.”