• About us
  • Advertise with us
  • Privacy Policy
  • Contact us
Thursday, September 4, 2025
  • Login
Envision Nigeria
  • Home
  • News
    • All
    • Business
    • Politics
    • Science
    • World
    NAMA installs AFTN in 26 airports, upgrades Aero-Comms infrastructure 

    NAMA installs AFTN in 26 airports, upgrades Aero-Comms infrastructure 

    Lagos committed to Nigeria’s $1trn economy ambition — Sanwo-Olu

    Lagos committed to Nigeria’s $1trn economy ambition — Sanwo-Olu

    Dangote denies owning truck that caused the Enugu accident 

    Dangote denies owning truck that caused the Enugu accident 

    FCCPC tackles abuses by digital lenders, violators to pay N100m fines

    FCCPC tackles abuses by digital lenders, violators to pay N100m fines

    Niger: Boat mishap claims 29 lives, 50 rescued, 2 still missing 

    Niger: Boat mishap claims 29 lives, 50 rescued, 2 still missing 

    Non-Oil drives Nigeria’s revenue with ₦15.69trn out of 20.59trn earned in 8 months

    Non-Oil drives Nigeria’s revenue with ₦15.69trn out of 20.59trn earned in 8 months

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Entertainment
    • All
    • Gaming
    • Movie
    • Music
    • Sports
    Bayern Munich agree £70.5m deal to sign Chelsea’s Jackson

    Bayern Munich agree £70.5m deal to sign Chelsea’s Jackson

    World Championship: Team Nigeria Athletes complete Gene Test

    World Championship: Team Nigeria Athletes complete Gene Test

    Yusuf Alli gives reasons why 15 athletes will represent Nigeria at Tokyo 2025 World Championships

    Yusuf Alli gives reasons why 15 athletes will represent Nigeria at Tokyo 2025 World Championships

    South Africa coach condemns Toyota Stadium in Bloemfontein for World Cup qualifier  against Super Eagles

    South Africa coach condemns Toyota Stadium in Bloemfontein for World Cup qualifier  against Super Eagles

    Super Eagles kick off Uyo Camp ahead of 2026 World Cup qualifier against Rwanda

    Super Eagles kick off Uyo Camp ahead of 2026 World Cup qualifier against Rwanda

    Djokovic beats Jan-Lennard Struff to reach US Open quarter-finals

    Djokovic beats Jan-Lennard Struff to reach US Open quarter-finals

  • World News
  • Lifestyle
    • All
    • Fashion
    • Food
    • Health
    • Travel
    FG unveils genomic strategy, prepares for AMR 2026

    FG unveils genomic strategy, prepares for AMR 2026

    How malaria affects human development

    How malaria affects human development

    Steps towards a successful career in events planning without breaking the bank

    Steps towards a successful career in events planning without breaking the bank

    National Cybercrime Centre dismantles WhatsApp fraud syndicate targeting Nigerian elites

    National Cybercrime Centre dismantles WhatsApp fraud syndicate targeting Nigerian elites

    Benefits of gloves, spiritually 

    Benefits of gloves, spiritually 

    What age difference is ideal between husband and wife?

    What age difference is ideal between husband and wife?

    Trending Tags

    • Golden Globes
    • Game of Thrones
    • MotoGP 2017
    • eSports
    • Fashion Week
  • Review

    The Legend of Zelda: Breath of the Wild gameplay on the Nintendo Switch

    Shadow Tactics: Blades of the Shogun Review

    The Last Guardian Playstation 4 Game review

No Result
View All Result
  • Home
  • News
    • All
    • Business
    • Politics
    • Science
    • World
    NAMA installs AFTN in 26 airports, upgrades Aero-Comms infrastructure 

    NAMA installs AFTN in 26 airports, upgrades Aero-Comms infrastructure 

    Lagos committed to Nigeria’s $1trn economy ambition — Sanwo-Olu

    Lagos committed to Nigeria’s $1trn economy ambition — Sanwo-Olu

    Dangote denies owning truck that caused the Enugu accident 

    Dangote denies owning truck that caused the Enugu accident 

    FCCPC tackles abuses by digital lenders, violators to pay N100m fines

    FCCPC tackles abuses by digital lenders, violators to pay N100m fines

    Niger: Boat mishap claims 29 lives, 50 rescued, 2 still missing 

    Niger: Boat mishap claims 29 lives, 50 rescued, 2 still missing 

    Non-Oil drives Nigeria’s revenue with ₦15.69trn out of 20.59trn earned in 8 months

    Non-Oil drives Nigeria’s revenue with ₦15.69trn out of 20.59trn earned in 8 months

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Entertainment
    • All
    • Gaming
    • Movie
    • Music
    • Sports
    Bayern Munich agree £70.5m deal to sign Chelsea’s Jackson

    Bayern Munich agree £70.5m deal to sign Chelsea’s Jackson

    World Championship: Team Nigeria Athletes complete Gene Test

    World Championship: Team Nigeria Athletes complete Gene Test

    Yusuf Alli gives reasons why 15 athletes will represent Nigeria at Tokyo 2025 World Championships

    Yusuf Alli gives reasons why 15 athletes will represent Nigeria at Tokyo 2025 World Championships

    South Africa coach condemns Toyota Stadium in Bloemfontein for World Cup qualifier  against Super Eagles

    South Africa coach condemns Toyota Stadium in Bloemfontein for World Cup qualifier  against Super Eagles

    Super Eagles kick off Uyo Camp ahead of 2026 World Cup qualifier against Rwanda

    Super Eagles kick off Uyo Camp ahead of 2026 World Cup qualifier against Rwanda

    Djokovic beats Jan-Lennard Struff to reach US Open quarter-finals

    Djokovic beats Jan-Lennard Struff to reach US Open quarter-finals

  • World News
  • Lifestyle
    • All
    • Fashion
    • Food
    • Health
    • Travel
    FG unveils genomic strategy, prepares for AMR 2026

    FG unveils genomic strategy, prepares for AMR 2026

    How malaria affects human development

    How malaria affects human development

    Steps towards a successful career in events planning without breaking the bank

    Steps towards a successful career in events planning without breaking the bank

    National Cybercrime Centre dismantles WhatsApp fraud syndicate targeting Nigerian elites

    National Cybercrime Centre dismantles WhatsApp fraud syndicate targeting Nigerian elites

    Benefits of gloves, spiritually 

    Benefits of gloves, spiritually 

    What age difference is ideal between husband and wife?

    What age difference is ideal between husband and wife?

    Trending Tags

    • Golden Globes
    • Game of Thrones
    • MotoGP 2017
    • eSports
    • Fashion Week
  • Review

    The Legend of Zelda: Breath of the Wild gameplay on the Nintendo Switch

    Shadow Tactics: Blades of the Shogun Review

    The Last Guardian Playstation 4 Game review

No Result
View All Result
Envision Nigeria
No Result
View All Result
Home In the News

Banks get three-month deadline to stop forex-backed loans

Ademola Damilola by Ademola Damilola
April 9, 2024
in In the News, News
0
Why 4,173 Bureau De Change operators’ licences were revoked – CBN
0
SHARES
4
VIEWS
Share on FacebookShare on Twitter

The Central Bank of Nigeria (CBN) intensified its efforts to enhance foreign exchange liquidity in the economy with a new directive on Monday. The circular mandated Deposit Money Banks to cease using foreign currencies as collateral for naira loans within 90 days. This move coincided with a positive trend in the naira’s value against the dollar in both official and parallel markets on the same day.

The CBN has been actively implementing measures to bolster dollar liquidity in the financial system, aiming to strengthen the naira against the US dollar. In its latest circular, signed by the acting Director of Banking Supervision Department, Adetona Adedeji, the CBN expressed concern over the use of foreign currencies as collateral for naira loans, noting the potential financial risks associated with currency mismatch.

The directive prohibits customers from using foreign currency as collateral for naira loans, except for Eurobonds issued by the Federal Government of Nigeria or guarantees of foreign banks, including standby letters of credit. Loans currently secured with dollar-denominated collateral are to be wound down within 90 days, failing which such exposures will be risk-weighted 150% for Capital Adequacy Ratio computation, in addition to other regulatory sanctions.

The CBN’s decision is driven by concerns about currency mismatch, which could pose significant financial risks for banks. Some borrowers prefer borrowing in naira rather than converting their dollars to hedge against foreign currency spikes, which may be costlier than naira interest rates. However, this practice can impact the exchange rate due to its speculative nature.

The CBN reiterated its commitment to ensuring adequate foreign exchange liquidity in the market while maintaining the naira’s strength. Eurobonds and Letters of Credit were highlighted as acceptable forms of foreign currency collateral, emphasizing their role in supporting legitimate trade transactions.

Furthermore, the CBN reminded the public of the legal tender status of the Nigerian Naira, as stated in the CBN Act of 2007. Any contravention of this provision is deemed an offence, punishable by a prescribed fine or imprisonment.

In response to the directive, Bureau De Change Operators expressed concerns about potential losses and disruptions to trading activities. However, the CBN’s adjustment of the exchange rate for Bureau De Change Operators aims to facilitate access to foreign exchange for legitimate transactions within the retail market.

Analysts viewed the CBN’s directive as a strategic move to boost dollar supply in the currency market and strengthen the naira. By discouraging banks from holding foreign currency collateral for naira loans, the CBN aims to align the country’s monetary policies with its objectives of exchange rate stability and economic growth.

Banks have initiated discussions with customers to liquidate naira loans, thereby unfreezing foreign exchange assets held in domiciliary accounts. This development is expected to increase dollar supply in the market and contribute to the appreciation of the naira.

Previous Post

BREAKING: FG declares Thursday additional Eid-El-Fitr holiday

Next Post

FG to engage 10,000 youths, retirees for tree planting programme – Minister

Ademola Damilola

Ademola Damilola

Next Post
FG to engage 10,000 youths, retirees for tree planting programme – Minister

FG to engage 10,000 youths, retirees for tree planting programme – Minister

Leave a Reply Cancel reply

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

Stay Connected test

  • 23.9k Followers
  • 99 Subscribers
  • Trending
  • Comments
  • Latest
FG commences electronic verification for military veterans February 19

FG commences electronic verification for military veterans February 19

February 15, 2024
Fr Ogunyemi charges Catholic women to go MAD

Fr Ogunyemi charges Catholic women to go MAD

February 20, 2024
BREAKING: FCT Minister’s residence gutted by Fire

BREAKING: FCT Minister’s residence gutted by Fire

February 25, 2024
Dr Patrick Tyodzer Pillah: A Scholar Shaping Public Policy, Governance, and Environmental Management in Nigeria

Dr Patrick Tyodzer Pillah: A Scholar Shaping Public Policy, Governance, and Environmental Management in Nigeria

February 11, 2025
Culture making Africans intolerant of blessings for same-sex couples – Pope

Culture making Africans intolerant of blessings for same-sex couples – Pope

1
CBN lacks power to receive NNPCL crude sales – Atiku

CBN lacks power to receive NNPCL crude sales – Atiku

1
Soldier questions non-recognition as Tinubu lavishes gifts on Super Eagles

Soldier questions non-recognition as Tinubu lavishes gifts on Super Eagles

1
Fr Ogunyemi charges Catholic women to go MAD

Fr Ogunyemi charges Catholic women to go MAD

1
NAMA installs AFTN in 26 airports, upgrades Aero-Comms infrastructure 

NAMA installs AFTN in 26 airports, upgrades Aero-Comms infrastructure 

September 3, 2025
Lagos committed to Nigeria’s $1trn economy ambition — Sanwo-Olu

Lagos committed to Nigeria’s $1trn economy ambition — Sanwo-Olu

September 3, 2025
Dangote denies owning truck that caused the Enugu accident 

Dangote denies owning truck that caused the Enugu accident 

September 3, 2025
FCCPC tackles abuses by digital lenders, violators to pay N100m fines

FCCPC tackles abuses by digital lenders, violators to pay N100m fines

September 3, 2025

Recent News

NAMA installs AFTN in 26 airports, upgrades Aero-Comms infrastructure 

NAMA installs AFTN in 26 airports, upgrades Aero-Comms infrastructure 

September 3, 2025
Lagos committed to Nigeria’s $1trn economy ambition — Sanwo-Olu

Lagos committed to Nigeria’s $1trn economy ambition — Sanwo-Olu

September 3, 2025
Dangote denies owning truck that caused the Enugu accident 

Dangote denies owning truck that caused the Enugu accident 

September 3, 2025
FCCPC tackles abuses by digital lenders, violators to pay N100m fines

FCCPC tackles abuses by digital lenders, violators to pay N100m fines

September 3, 2025
Envision Nigeria

Envisionnigeria. com.ng is an on-line publication established to give expression to Article 19 of the Universal Declaration of Human Right. It is an apolitical community of Journalist and Global citizens committed to making the World a better place.

Follow Us

Browse by Category

  • Apps
  • Business
  • Crime
  • Culture
  • Education
  • Entertainment
  • Evironment
  • Fashion
  • Feature
  • Food
  • Foreign News
  • Gadget
  • Gaming
  • Health
  • In the News
  • Interview
  • Lifestyle
  • Mobile
  • Movie
  • Music
  • News
  • Politics
  • Review
  • Science
  • Sports
  • Startup
  • Tech
  • Travel
  • World

Recent News

NAMA installs AFTN in 26 airports, upgrades Aero-Comms infrastructure 

NAMA installs AFTN in 26 airports, upgrades Aero-Comms infrastructure 

September 3, 2025
Lagos committed to Nigeria’s $1trn economy ambition — Sanwo-Olu

Lagos committed to Nigeria’s $1trn economy ambition — Sanwo-Olu

September 3, 2025
  • About us
  • Advertise with us
  • Privacy Policy
  • Contact us

© 2024 Envision Nigeria Publications & Communication Limited

No Result
View All Result

© 2024 Envision Nigeria Publications & Communication Limited

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In