The Central Bank of Nigeria, CBN, has ordered deposit money banks to sell their excess dollar stock today.

In a circular released yesterday, the CBN imposed limits on how much banks can hold in foreign currencies, lamenting the growth of forex exposures on their balance sheets following the naira’s tumble against the US dollar.

According to officials, the central bank believes some commercial banks hold long-term foreign exchange positions to enable them to profit from the volatile movements of exchange rates.

The latest circular came barely 48 hours after the CBN released a circular warning banks and FX dealers against reporting false exchange rates, among others.

The new circular also introduced a set of guidelines aimed at reducing the risks associated with these practices.

Regarding the current Naira crisis, economist Paul Alaje said efforts must be taken to address the dire situation.

Speaking in an interview this morning, Alaje said efforts need to be accelerated to control the hoarding of the naira.