Bank customers who do not earn foreign exchange (forex) will henceforth not be able to secure dollar-denominated loans, the Central Bank of Nigeria (CBN) has said.
CBN Director, Banking Supervision, Mrs. Tokunbo Martins, broke the news yesterday at the CBN-Financial Institutions Training Centre (FITC) continuous education programme for Directors of Banks and Other Financial Institutions, held in Lagos.
She said the policy shift followed the continuous depreciation of the naira and subsequent rise in foreign currency exposures of banks in naira terms. She said the currency depreciation, which intensified following the introduction of the flexible exchange regime, had increased the loan repayment obligation of borrowers and threatened their capacities to meet contracted loan repayments. Read more