The Central Bank of Nigeria (CBN) has issued a directive prohibiting Nigerian banks from using Foreign Currency-denominated collaterals for Naira loans.This directive, outlined in a letter to all commercial banks signed by Director of Banking Supervision Department, Adetona Adedeji, aims to address prevailing practices where bank customers utilize Foreign Currency (FCY) as collaterals for Naira loans.Under the new guidelines, only specific exceptions are allowed, in...

The Central Bank of Nigeria has reiterated that banks operating in the country cannot use their foreign exchange revaluation gains to pay dividends or meet their operational expenses.In a circular from the apex bank on Thursday signed by the acting Director, the Banking Supervision Department, Adetona Adedeji, banks were warned against such a move.“Further to our letter dated September 1, 2023, referenced BSD/DIR/CON/LAB/16/020 on the above subject, the Central Bank...

Nigeria’s currency has continued to experience free-fall against the Dollar two months after the Central Bank of Nigeria’s floating of the naira, a decision that has further worsened the woes of Africa’s largest economy.From June 14, when CBN liberalized the forex market, till date, the country’s currency has continued to slump against the Dollar from N750/$1 at the parallel market known as the black market to N950/$1 on Monday, August 14, 2023.The situation became...