CBN orders commercial banks to sell excess dollars

The Central Bank of Nigeria (CBN) has ordered Deposit Money Banks (DMBs) to sell their excess dollar stock latest February 1, 2024, as part of moves to stabilise the nation’s volatile exchange rate.

In a new circular released on Wednesday, the apex bank also warned lenders against hoarding excess foreign currencies for profit.

Titled, “Harmonisation of Reporting Requirements on Foreign Currency Exposures of Banks”, the apex bank 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 its latest circular, the apex bank accused banks of holding excess foreign exchange positions. It gave lenders until February 1, 2024 (today) to sell off excess dollar in their vault.

The circulated, dated January 31, 2024, was signed by the Director, Trade and Exchange, CBN, Dr. Hassan Mahmud, and representative of the Director, Banking Supervision, CBN, Mrs. Rita Sike.