Categories: News

CBN orders banks to sell excess dollars in 24 hours

Amid its fresh moves to stabilise the nation’s volatile exchange rate, the Central Bank of Nigeria has ordered Deposit Money Banks to sell their excess dollar stock latest February 1, 2024.

The CBN, which made the disclosure in a new circular released on Wednesday, also warned lenders against hoarding excess foreign currencies for profit.

Advertisement

According to officials, the central bank believes some commercial banks hold long-term foreign exchange positions to enable them profit from the volatile movements of exchange rates.

The new circular introduces a set of guidelines aimed at reducing the risks associated with these practices.

Advertisement

In the circular titled, “Harmonisation of Reporting Requirements on Foreign Currency Exposures of Banks”, the CBN raised concerns over the growing trend of banks holding large foreign currency positions.

The latest circular came barely 48 hours after the CBN released a circular, warning banks and FX dealers against reporting false exchange rates, among others.

Advertisement

The new development also came on the heels of the adjustment of the methodology used for the calculation of the nation’s official exchange rate by the FMDQ Exchange.

 

Advertisement
citynews

Recent Posts

TINUBU, AKPABIO ALLEGEDLY ON WAR PATH OVER N687BILLION PADDED INTO THE 2024 BUDGET

  Things appear to be falling apart for President Bola Tinubu and Senate President Godswill…

2 hours ago

Trump picks Scott Bessent, the ‘investor favorite,’ for Treasury secretary

President-elect Donald Trump announced Friday evening that investor Scott Bessent will be his nominee for…

5 hours ago

Wike, G5 Governors Out To Destroy PDP – Rep Member Ugochinyere

A member of the House of Representatives from Ideato North and South Federal Constituency of…

5 hours ago

Why Nigerians are in pain, difficulties amid Tinubu’s reforms – Edun

Minister of Finance, Wale Edun, has said that non-implementation of economic reforms by past administrations…

5 hours ago

Naira Depreciates To ₦‎1,750/$ In Parallel Market

The Naira on Friday depreciated to N1,750 per dollar in the parallel market from N1,745…

5 hours ago

Why Seyi Tinubu Can’t Be Lagos Governor- Igbokwe

A member of the All Progressives Congress (APC), Joe Igbokwe, has said Seyi Tinubu, son…

23 hours ago