CBN Bans Foreign Currencies as Collateral for Naira Loans

All Nigerian banks have received a letter from the Central Bank of Nigeria asking them to cease using foreign currencies as security for naira loans.

This was revealed in a circular that was posted on its website on Monday.

The top bank stated that it has seen FCY being used as collateral for naira loans by its clients and, as a result, it forbids it going forward.

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