The Bank Directors Association of Nigeria (BDAN) has expressed support for the Central Bank of Nigeria’s (CBN) directive instructing commercial banks to stop “hoarding” foreign currencies. The CBN issued a circular titled “Harmonisation of Reporting Requirements on Foreign Currency Exposures of Banks,” expressing concerns over the escalating foreign currency exposure of banks through their Net Open Positions (NOP). The directive urged banks to sell excess dollar stocks to their customers and specified that the NOP limit for overall foreign currency assets and liabilities should not exceed 20% short or zero percent long of shareholders’ funds.
BDAN, in a statement by its Chairman, Board of Directors, Mustafa Chike-Obi, on Monday, voiced its support for the CBN’s measures aimed at fortifying the nation’s financial system. The association commended the CBN for its proactive stance in safeguarding the interests of depositors, investors, and the overall economic well-being of Nigeria. It views the regulatory measures as positive steps toward creating a resilient financial landscape, preventing adverse effects on the banking sector, and contributing to the long-term sustainability and growth of the Nigerian economy.
BDAN encouraged all banks to fully comply with the new directives and actively participate in the implementation process. The association acknowledged the meticulous work undertaken by the CBN in consulting stakeholders and experts to ensure a balanced and effective regulatory approach. BDAN pledged its continuous collaboration with the CBN and other stakeholders to foster a dynamic and resilient financial ecosystem, supporting initiatives that contribute to the stability and prosperity of the Nigerian economy.
