Home Why CBN banned use of foreign currency as collateral for Naira loans

Why CBN banned use of foreign currency as collateral for Naira loans

Share
Share

By Chioma Obinagwam

 

The Central Bank of Nigeria—the apex of Nigeria has instructed all Nigerian banks to stop accepting foreign currencies as collateral for loans denominated in naira.

 

Confiance News gathered from a circular titled “The use of foreign currency denominated collateral for Naira loans” the official X handle of CBN on Monday.

 

“Consequently, he current practice of using Foreign Currency-denominated collaterals for Naira Loans is hereby PROHIBITED, except, where the foreign currency collateral is: Eurobonds issued by the FG or Guarantees of foreign banks, including Standby Letters of Credit,” the statement disclosed.

 

The statement which was signed by the bank’s Acting Director, Banking Supervision Department, Adetona Adedeji, ordered banks to wound down all loans currently secured with dollar-denominated collaterals with the exception of those stated above, within 90 days.

 

Adedeji added that defaulters will be

sanctioned.

 

 

Share

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Member

Don't Miss

When God’s answer disappoints you: Stay the course

By Chioma Obinagwam Christians have been challenged to resist the temptation of walking away from God when His answers do not match their...

‎REVEALED: How Nigeria’s Energy Crisis is Driven by Debt and Global Forces‎

By ‎Blaise Udunze‎‎‎For months, Nigerians have argued in circles. Aliko Dangote has been blamed by default. They have accused his refinery of monopoly...

Related Articles

When God’s answer disappoints you: Stay the course

By Chioma Obinagwam Christians have been challenged to resist the temptation of...

‎REVEALED: How Nigeria’s Energy Crisis is Driven by Debt and Global Forces‎

By ‎Blaise Udunze‎‎‎For months, Nigerians have argued in circles. Aliko Dangote has...

‎Why Jesus Is never called “The Late Jesus”‎

By Chioma Obinagwam‎‎Across all of human history, spanning thousands of years and...

‎APC Chairman Yilwatda urges unity, hope this Easter‎

‎By Chioma Obinagwam‎The National Chairman of the All Progressives Congress (APC), Professor...