Nigeria's Central Bank prohibits banks from using FX revaluation gains for dividends or expenses, requiring them to set aside as a buffer.
Nigeria's Central Bank (CBN) has reminded banks that they cannot use foreign exchange (FX) revaluation gains to pay dividends or cover operational expenses. The CBN instructs banks to set aside these gains as a counter-cyclical buffer to safeguard against adverse movements in the FX rate. The directive emphasizes the need for prudent financial management and risk mitigation, with non-compliance potentially leading to regulatory action.
March 14, 2024
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