In a bid to stabilize the nation’s exchange rate, the Central Bank of Nigeria (CBN) has directed Deposit Money Banks to divest their excess dollar holdings by February 1, 2024.
The circular mandates banks to sell surplus dollar liquidity exceeding $5 billion, aiming to curb hoarding and profit-seeking practices.
The CBN’s move follows concerns about banks holding significant foreign currency positions, and the new guidelines intend to mitigate associated risks. This directive aligns with recent efforts by the CBN to regulate forex activities and foster exchange rate stability.
