CBN Directs Banks to Sell Excess Dollars in 24 Hours

In a move to stabilize Nigeria’s volatile exchange rate, the Central Bank of Nigeria has directed Deposit Money Banks to divest their excess dollar reserves by February 1, 2024. This directive, communicated through a recent circular released on Wednesday, aims to curb the practice of banks hoarding foreign currencies for speculative purposes.

The CBN’s decision underscores its commitment to maintaining a balanced foreign exchange market. Officials have expressed concerns that certain banks may be holding onto significant foreign exchange positions with the intention of profiting from fluctuating exchange rates.