The Central Bank of Nigeria (CBN) has barred commercial banks from selling CBN intervention funds in the interbank market to bureaux de change (BDCs).
In a circular titled ‘TED/FEM/FPRB/GEN/01/020’, dated October 28, 2014, issued by the banking regulator, it directed that funds purchased through the CBN interventions should be utilised within two working days of delivery at a rate not more than 10 kobo above the purchase rate.
The CBN circular also directed that unutilised funds within two days of delivery should be returned at the original purchase rates.
The directives are understood as intended to ensure compliance with the net open trading position limit and to ensure further control of the interbank market operations.
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CBN said any observed flouting of these directives “will be appropriately sanctioned”.
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