The Central Bank of Nigeria (CBN) says it will tomorrow raise the foreign exchange net open position limit for banks. The CBN, in a circular to lenders, on Friday, said the foreign exchange net open position limit for banks will now be three percent from one percent of shareholders' funds.

The apex bank's position was contained in a circular signed by Mr Batani Musa, the bank's Director of Trade and Exchange Department, sent to all authorised dealers.

The News Agency of Nigeria (NAN) reports that the net open position is the ratio of dollars banks can hold relative to shareholders' funds.

The CBN had on Oct.10 slashed net open positions to one per cent from five per cent. The apex bank said the decision is to help protect the local currency.