By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE) – The Central Bank of Nigeria (CBN) said on Tuesday that banks are required to use dollars bought from the interbank market within 72 hours from the valued date, after which they must be returned to the CBN for re-purchase at the Bank’s buying rate.

This is contained in a circular with reference number TED/FEM/FPC/GEN/01/001 dated January 12, 2014 and signed by O.L. Ahuchogu, for director, trade and exchange department of the CBN, on daily foreign currency trading position of banks and period of utilization of funds.

The policy is intended to check speculation on the local currency, which has been negatively affected in the past few months by falling oil prices.

The CBN also said authorised dealers are required to maintain 0.1 percent as maximum open limit of their shareholders funds (SHF) unimpaired by losses as foreign currency trading position at the close of each business day.