Naira traded flat on the interbank market on yesterday
as lenders exited the U.S. currency to cover their
funding needs on the local currency amid tight naira
liquidity.
The Central Bank withdraw N242 billion from the
banking system two weeks ago to enforce a new cash
reserve requirement (CRR), aimed at tightening naira
liquidity to support the currency.
The regulator removed N1 trillion in August when it
first announced a hike to CRR for banks to take on
public sector funds to 50 percent from 12 per cent.
The naira closed at N161.9 to the greenback, the same
level it closed on Friday. A dealer told Reuters that a
naira shortage on the market had caused banks to exit
their dollar positions, to meet obligations in local
currency.
“We see slowing demand for the dollar this week which
should help stabilise naira within the present range,”
another dealer said.
Tighter liquidity has also driven interbank lending rates
higher. Last Friday, interbank rate climbed to an
average of 26 per cent, on the apex bank\s policy
moves compared with 18 per cent the previous week.
At the official foreign exchange window, the Central
Bank sold $300 million at N155.76 to the dollar, the
same amount and rate it auctioned last Wednesday.

Source: www.thenationonlineng.net/new/naira-closes-flat-as-banks-short-dollar/

let me read again