CBN gives reason six banks were disqualified from FX auction

The Central Bank of Nigeria says six out of 32 banks that bid for foreign currency at its recently launched retail Dutch Auction System were disqualified because they failed to meet requirements.

CBN disclosed this in a statement by its Director, Financial Markets Department, Omolara Duke.

DAILY POST reports that CBN sold $876.26 million at an N1,495 per dollar rate to 26 banks on Wednesday.

However, CBN noted that bids from 6 banks valued at $313.69 million were disqualified.

Four of the disqualified banks did not submit their bid request at the stipulated time.

The apex bank said that 2 (two) banks that were disqualified at the auction did not provide bids in the template submitted.

“…While bids valued at US$313.69 million from 6 (six) banks were disqualified. Of the disqualified bids, 4 (four) banks submitted their bids after the cut-off time of 3:00 pm, while 2 (two) banks did not provide bids in the template submitted. All bids with Form Q. and unverifiable Form A and Form M on the Trade Portal were disqualified”, the statement partly reads.

Recall that the CBN on Tuesday introduced the retail Dutch Auction System to tackle the dollar demand spike.

This is as the Naira recorded three straight appreciations against the dollar at the official foreign exchange market.