Banks Rush to Sell Excess FX Holdings Ahead of CBN Deadline

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Commercial banks in Nigeria were in a frenzy on Thursday as they worked tirelessly to offload their surplus foreign exchange holdings ahead of the midnight deadline set by the Central Bank of Nigeria (CBN).

Reports indicate that the treasury departments of Deposit Money Banks (DMBs) were inundated with requests and transactions as they sought to comply with the CBN directive. Throughout the day, bank officials processed numerous foreign exchange requests from customers, facilitating the sale of excess dollars in their possession.

The surge in forex sale activities in the official foreign exchange market contributed to a notable rebound of the naira at the parallel market. Top executives from various banks confirmed the heightened forex transactions but preferred anonymity due to the sensitive nature of the matter.

The latest directive from the CBN aims to harmonize the official and parallel market rates of the naira, prompting banks to step up efforts to sell forex to their customers. This surge in activity led to a significant strengthening of the national currency in the official market.

Source: Punch

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