To enhance liquidity in the foreign exchange market, the Central Bank of Nigeria (CBN) said it has successfully conducted a Retail Dutch Auction System (rDAS) sale, resulting in the approval of bids valued at $876.26 million from 26 authorised dealer banks.

According to a statement by the Director of the Financial Markets Department at the CBN, Omolara Duke, the sale conducted on Tuesday highlights the Central Bank’s efforts to stabilise the foreign exchange market and ensure effective price discovery.

A Dutch auction is a type of auction in which the auctioneer starts with a high asking price and gradually lowers it until a bidder accepts the current price, thereby winning the auction.

Ms Duke said the auction saw a total of $1.18 billion in bids from 32 authorised dealer banks.

However, bids amounting to $313.69 million from six banks were disqualified for various reasons, including late submission and unverified documents. Specifically, four banks submitted their bids after the cut-off time of 3:00 p.m., and two banks failed to provide necessary documentation on the trade portal, leading to the disqualification of their bids.

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