Sure! Here’s the rewritten blog post using simple English that can be easily understood:
The Central Bank of Nigeria (CBN) held a Retail Dutch Auction on August 6, 2024. Nine companies bought a total of $25.76 million to pay back their loans.
This auction helps CBN manage the demand for foreign money (like dollars) and find the true price of the currency. This is part of their plan to improve Nigeria’s economy.
The loan repayments were only about 3% of the total $876.26 million that CBN sold in the auction.
How much foreign currency each company bought
- Guinness Nigeria PLC bought the most, getting $15.8 million at a rate of N1,540 per $1. Guinness makes drinks like Guinness Stout and Malta Guinness. They needed this money to pay back their foreign loans.
- Churchgate Investments Ltd, a company that develops real estate, bought the least amount, which was $146,000 at a rate of N1,520 per $1.
- Nucleus Ventures Ltd bought $1 million at a rate of N1,550 per $1 through Access Bank PLC. Nucleus Ventures is a business that deals with trading and investment.
- Tower Rolling and Galvanizing Mills Limited and HIS (Nigeria) Limited also bought large amounts. Tower Rolling bought $3.31 million at a rate of N1,510 per $1, and HIS (Nigeria) Limited bought $2 million at a rate of N1,570 per $1. Tower Rolling works in steel manufacturing, while HIS provides training, recruitment, and project management services.
- Crown Flour Mills – AFP got $2 million at a rate of N1,575 per $1 through Keystone Bank PLC. Crown Flour Mills makes food products and needed this money for their operations in Nigeria.
- Tower Alloys Industries Limited and African Foundries Ltd. both bought $500,000 each at a rate of N1,510 per $1. They are both from the manufacturing industry.
- Int Towers Limited, a part of IHS Towers which provides telecommunications infrastructure, bought $500,000 at a rate of N1,570 per $1 through Standard Chartered Bank.
What you should know
The Central Bank of Nigeria (CBN) sold $876.26 million at N1,495 per $1 to 26 qualified banks in its latest Retail Dutch Auction.
CBN said they received bids totaling $1.18 billion from 32 banks, but they rejected bids from six banks. Four banks didn’t meet the deadline, and two banks didn’t follow the correct bidding format.
It was earlier reported that Dangote Group’s companies bought at least $105.33 million in successful foreign currency bids in the auction. This was about 13% of the total amount CBN sold to the banks.
I hope this helps!