Central Bank of Nigeria Introduces Dutch Auction System to Stabilise Naira Amid Rising FX Demand

• The Central Bank of Nigeria implements a Dutch Auction System to manage foreign exchange allocation
• Banks are directed to provide a detailed list of outstanding FX demands from end users

Lagos, Nigeria – In a bid to address the mounting pressure on the naira and rising demand in the foreign exchange market, the Central Bank of Nigeria (CBN) announced Saturday the introduction of the Dutch Auction System (DAS) for foreign exchange allocation. The new system aims to stabilise the naira by ensuring a more efficient allocation of foreign currency.