FX Volatility: CBN Issues 24Hrs Deadline For Banks To Sell Excess Dollar

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News Investigators/ The Central Bank of Nigeria (CBN) has issued 24 hours notice to Deposit Money Banks (DMBs) to sell their excess dollar stock latest today February 1, 2024.

The move, according to the apex bank, was part of measures to stabilise the nation’s volatile exchange rate.

In a circular titled: “Harmonisation of Reporting Requirements on Foreign Currency Exposures of Banks,” dated January 31, 2024, released on Wednesday, warned lenders against hoarding excess foreign currencies for profit.

The CBN raised concerns over the growing trend of banks holding large foreign currency positions.

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

In the circular, signed by the Director, Trade and Exchange, CBN, Hassan Mahmud, and representative of the Director, Banking Supervision, CBN, Rita Sike, the apex bank accused banks of holding excess foreign exchange positions. It gave lenders until February 1, 2024 (today) to sell off excess dollar positions.

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