The Central Bank of Nigeria has directed all foreign exchange dealers to terminate their excess foreign currency to positions with fellow dealers at no more than one naira spread.

The FX funds purchased at the interbank market, however, may not be held in position overnight.

The Central Bank also warned all dealers not to exceed the foreign currency trading position limit, unless approval is granted by the regulator.

The directive is part of a set of rules introduced through a circular on Monday.

The circular read in part, “All authorised dealers shall be subject to a maximum spread of N1.

“Funds purchased by an authorised dealer from another dealer on the interbank market shall not be held in position overnight by the buying authorised dealer or sold to another authorised dealer.”

“Such interbank purchases shall only be sold by the buying authorised dealer to its customers for permitted/eligible transactions as outlined in the above-referenced circular.”