The Bank Directors Association of Nigeria has voiced its support for the Central Bank of Nigeria’s recent directive urging commercial banks to cease “hoarding” foreign currencies.

In response to the CBN’s expressed concerns regarding banks’ escalating foreign currency exposure, particularly through their Net Open Positions, the regulatory body issued a circular titled “Harmonisation of Reporting Requirements on Foreign Currency Exposures of Banks.” This circular mandates banks to promptly sell all surplus dollar holdings to their clientele.

The CBN’s directive outlines that the Net Open Position limit for total foreign currency assets and liabilities should not exceed 20 percent short or zero percent long of shareholders’ funds.