Central Bank of Nigeria prohibits foreign currency-denominated collaterals for naira loans, except for two exceptions.
The Central Bank of Nigeria (CBN) has announced a new measure prohibiting the use of foreign currency-denominated collaterals for naira loans. The CBN has exempted two exceptions: Eurobonds issued by the Federal Government of Nigeria and Guarantees of foreign banks, including Standby Letters of Credit. This move aims to safeguard the banking system against potential risks associated with a strengthening local currency.
April 08, 2024
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