The Central Bank of Nigeria (CBN) says it will commence a Retail Dutch Auction System to address foreign exchange fluctuations in the country’s forex market.

The apex bank disclosed this in a circular at the weekend, noting that there has been a surge in the demand for FX in recent times.

The bank stated that the DAS, which is planned to kick off on Wednesday, 7 August 2024 would tackle the FX crisis in Nigeria.

Consequently, CBN directed all authorized dealer banks to submit a comprehensive and legitimate list of outstanding FX demands from their end users.

“The accounts of prospective customers must be naira-backed to qualify for participation in the auction, ensuring immediate settlement upon confirmation of bid acceptance by the CBN,” the apex bank.

Recall that last week, FMDQ data showed that the Naira depreciated to N1617.08 per dollar despite CBN’s intervention.

Within the last three weeks, the apex bank had sold $254.5 million to FX legible dealers.