The Central Bank of Nigeria has ordered Deposit Money Banks to sell their excess dollar stock latest on Thursday, February 1, 2024 in a bid to stabilise the nation’s volatile exchange rate.
The CBN, which made the disclosure in a new circular released on Wednesday, also warned lenders against hoarding excess foreign currencies for profit.
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.
Meanwhile, the new circular introduces a set of guidelines aimed at reducing the risks associated with these practices.
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