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The Central Bank of Nigeria (CBN) has enacted stringent measures to bolster liquidity in the foreign exchange market, instructing banks to limit their Net Open Position (NOP) of foreign currency assets and liabilities to 20% of shareholders' funds.

The directive, issued through a CBN circular, aims to fortify the Naira, prevent excessive trading, and curb potential abuses by dealers. The move elicited mixed reactions among Nigerians, with concerns raised about the widening gap between the parallel and official market exchange rates.

Analysts suggest that the CBN's actions could lead to a sudden influx of forex into the market, potentially triggering currency appreciation and stabilizing the economy.

The CBN emphasizes the need for banks to comply promptly with the new regulations, with non-compliance facing immediate sanctions or suspension from the forex market. As the forex market reacts to these changes, close monitoring is advised to assess the impact on liquidity, compliance levels, and broader economic indicators.