Last Friday, the official foreign exchange market witnessed a significant surge in US dollar supply, soaring by 180.59% to reach $440.13 million. Commercial banks rushed to avoid regulatory sanctions from the Central Bank of Nigeria (CBN), resulting in this influx. Amidst a turbulent week, the Naira marginally appreciated to close at N1,435.53 per Dollar.
Data from FMDQ Security Exchange revealed these developments at the close of work on Friday. Additionally, the Naira experienced a gain in the parallel market, trading at 1,440 per US dollar on Friday, up from N1,470 on the preceding Thursday.
The CBN had issued a circular titled “Harmonisation of Reporting Requirements on Foreign Currency Exposures of Banks” the previous week, expressing concern over the increasing trend of banks holding large foreign currency positions. Consequently, the apex bank mandated that banks’ Net Open Position (NOP) must not exceed 20% short or 0% long of the bank’s shareholders’ funds going forward.
