CBN Reviews Foreign Currency Trading Position

The Central Bank of
Nigeria (CBN) as said that it has reviewed the daily foreign currency trading positions of banks.
This is contained in a circular which was issued by the Central Bank’s Trade and Exchange Department, and posted on the bank’s website.
CBN said that the foreign exchange bought either from autonomous or interbank market if not utilized should be returned to the apex bank.
The circular entitled: Daily Foreign Currency Trading position of Banks and period of utilization of funds” was issued to all authorized dealers.
According to the apex bank, the circular takes immediate effect, and also directed all authorized dealers to maintain 0.1 per cent maximum open limit of their shareholders fund at cose of each business day.
Besides, it asked banks to utilize funds purchased from the autonomous/interbank foreign exchange market witin 72 hours from the value date.
It said that unutilized funds must be returned to the CBN for re-purchase at the ban’s buying rate.
The circular also urged ealders to ensrue that there is strict compliance with the directives.

Corlins Walter