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World Bank Issues Warning to CBN Over Sale of Dollar to Zenith, Access, GTB Others [Video]

  • The Central Bank of Nigeria has been urged to refrain from intervening in the forex market through auctions
  • This occurred as the CBN auctioned $876.26m to end users via a retail Dutch auction
  • It stated that granting market participants more freedom in their forex trading will contribute to market’s depth

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

The Central Bank of Nigeria has been advised by the World Bank against using forex auctions as a means of interfering in the foreign exchange market.

According to World Bank, permitting market participants to trade FX with more flexibility across time would also contribute to deepening the FX market. Photo Credit: CBN, World BankSource: Getty Images

Additionally, the World Bank suggested that the commitment to exchange rate flexibility be consistently reaffirmed by implementing a thorough, methodical, and open framework for foreign exchange interventions.

The policy advisory issued by the World …

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