TheCable

The Central Bank of Nigeria (CBN) has reviewed the daily foreign currency trading positions of banks.

The apex bank directed that foreign exchange bought either from autonomous or interbank market should be returned if not utilised.

This development was contained in a circular titled: ‘Daily foreign currency trading positions of bank and period for utilisation of funds’.

The circular was issued to all authorised dealers by CBN’s trade and exchange department.

O.L. Ahuchogu, director, trade and exchange, who signed the document, said it takes immediate effect.

The circular directed all authorised dealers to maintain 0.1 per cent maximum open limit of their Shareholders’ Fund (SHF) at close of each business day.

In addition, the banks were asked to utilise funds purchased from the autonomous/interbank foreign exchange market within 72 hours from the value date.

It said that unutilised funds must be returned to the CBN for re-purchase at the bank’s buying rate, urging dealers to ensure strict compliance to the demands of the circular.