On August 6, 2024, the Central Bank of Nigeria (CBN) held a Retail Dutch Auction System (RDAS) in an attempt to enhance supply and encourage price discovery in the foreign exchange market.
Thirty-two authorised dealer banks submitted a total of $1.18 billion in bids for this auction.
Approximately 26 banks filed bids totaling $876.26 million at a rate of N1,495 per dollar to end users; bids totaling $313.69 million from six banks were rejected.
BusinessDay reported that this action was taken in reaction to the persistent pressure on the foreign exchange market (FX market), which has been made worse by unfulfilled end-user demand, especially as people and businesses in Nigeria continue to struggle with a lack of foreign currency.
The calls for bids were in the naira/US dollar (N/US$) currency pair for unmet foreign exchange demand backed by verifiable Forms A and M only, according to a recent document released by the apex bank on the outcome of the retail FX sales to end users through authorised dealer banks via the Retail Dutch Auction System (RDAS) by the Central Bank of Nigeria Held on August 06, 2024.
It said
The banks who obtained the most foreign exchange (FX) from the CBN in the most recent Retail Dutch Auction are listed below:
1. Zenith Bank – $267.86 million
2. First Bank of Nigeria (FBN) – $228.99 million
3. Access Bank – $79.09 million
4. Fidelity Bank – $43.61 million
5. GTBank (GTB) – $29.54 million
6. Standard Chartered (STANCHART) – $28.42 million
7. TAJ Bank – $19.1 million
8. Jaiz Bank- $16.71 million
9. Sterling Bank– $14.39 million
10. Union Bank – $13.26 million
11. Citi Bank – $12 million
12. Providus Bank – $11.45 million
