•Banks may sell over $5bn, says official, Cardoso faces Senate Tuesday over naira fall

Amid its fresh moves to stabilise the nation’s volatile exchange rate, the Central Bank of Nigeria has ordered Deposit Money Banks to sell their excess dollar stock latest February 1, 2024.

The new circular would force banks to sell off excess dollar liquidity exceeding $5bn.

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.

The new circular introduces a set of guidelines aimed at reducing the risks associated with these practices.

In the circular titled, “Harmonisation of Reporting Requirements on Foreign Currency Exposures of Banks”, the CBN raised concerns over the growing trend of banks holding large foreign currency positions.

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

The new development also came on the heels of the adjustment of the methodology used for the calculation of the nation’s official exchange rate by the FMDQ Exchange.

The top banker said, “Just as some Nigerians prefer to keep their money in dollars because naira is not a good store of value, banks also hold excess dollar liquidity to make gains. They do their own at institutional level.  What the CBN is saying with this new circular is that, you cannot hold excess dollar liquidity again. Any foreign exchange you are holding must be committed to something, a transaction or obligation you can proof. Banks have made a lot of revaluation gains. Some banks, I believe, got approval under the last administration to hold more dollar than the requirement. The idea is that if banks sell all these excess dollars, there will liquidity and the exchange rate will stabilise. Foreign investors will come in.”

Ibrahimcoomasie:
This is the immediate result of the policy. We hope they have what it takes to sustain it and stop the activities of speculators of which the banks are the major participant.

Nigerians banks is the only one in the world declaring huge profit without any impact in the real sector of the economy.... They are window dressing their financials or making gains frm dollars racketting.

Ibrahimcoomasie:
This is the immediate result of the policy. We hope they have what it takes to sustain it and stop the activities of speculators of which the banks are the major participant.

Nigerians banks is the only one in the world declaring huge profit without any impact in the real sector of the economy.... They are window dressing their financials or making gains frm dollars racketting.

Tyche:
Lmao. Nigerian banks don't have that much liquidity nor anything near it

ENDTIMEISNEAR:
Uselessss APC Government. This is what you get when you voted for is my turn Baba blu, Bubaba, dollar is moving to N2000
Those that voted for this Afonjaas Thieftinubu shey Una dey enjoy the high fuel price and food price

PrinceOfLagos:
When your president and his employees are clueless and confused

Una go still sell Naira in excess

Ibrahimcoomasie:
This is the immediate result of the policy. We hope they have what it takes to sustain it and stop the activities of speculators of which the banks are the major participant.

Nigerians banks is the only one in the world declaring huge profit without any impact in the real sector of the economy.... They are window dressing their financials or making gains frm dollars racketting.

PARADIZEPRIEST:
KUDOS!
The new CBN regime has been shielding commercial banks alot to prevent international scandals of past regime and avoid scaring away foreign investors.
Serioid Naija bank managers are high level crooks conniving with BDCs to wrack foreign exhange system with criminality

Ibrahimcoomasie:
This is the immediate result of the policy. We hope they have what it takes to sustain it and stop the activities of speculators of which the banks are the major participant.

Nigerians banks is the only one in the world declaring huge profit without any impact in the real sector of the economy.... They are window dressing their financials or making gains frm dollars racketting.

Bullfallo:
what app is that

It’s above 1400 on binance and others

BadMaster:

What platform is this? Because, even on Binance, it's trading above #1,400 ish

PARADIZEPRIEST:
ANY MUROON HIDING DOLLAR PAPER money,THE US DIGITALDOLLARS WILL SOON CATCH UP WITH YOU FOOLS AND SABOTUERS WILL LOSE MASSIVELY,IFSHA