RegAlert
2024-03-14 | BSD/DIR/PUB/LAB/017/003

Added · Updated

Re: Impact of Recent Policy Reforms-Prudential Guidance to the Banking Sector

The Central Bank of Nigeria has issued a letter to all banks, reminding them of the requirement to set aside foreign currency revaluation gains as a buffer against potential negative FX rate movements. Banks are instructed not to use these gains for dividend payments or operational expenses. This guidance aims to ensure the banking sector remains stable and resilient in the face of potential FX rate fluctuations.

Central Bank of Nigeria logo

Nigeria

Central Bank of Nigeria

Scan of the document's first page
Share

CBN published 1 document in the last 30 days — get each new one by email the day it lands.

Central Bank of Nigeria
Banking Supervision Department P.M.B. 12194 Tinubu Square, Lagos.

Email: bsd@cbn.gov.ng Website: www.cbn.gov.ng 09-4623603 Tel: ........................

BSD/DIR/PUB/LAB/017/003 March 14, 2024 LETTER TO ALL BANKS RE: IMPACT OF RECENT FX POLICY REFORMS: PRUDENTIAL GUIDANCE TO THE BANKING SECTOR Further to our letter dated September 11, 2023, referenced BSD/DIR/CON/LAB/16/020 on the above subject, the Central Bank of Nigeria wishes to reiterate that banks are required to exercise utmost prudence and set aside FCY revaluation gains as a counter-cyclical buffer to cushion any adverse movements in the FX rate.

In this regard, banks shall not utilize such FX revaluation gains to pay dividends or meet operating expenses. Please be guided accordingly.

Yours faithfully,
DR. ADETONA S. ADEDEJI
AG. DIRECTOR, BANKING SUPERVISION DEPARTMENT

Note from RegAlert. AI assistants can read this document in full, and search 70,000+ more, through the RegAlert MCP connector (https://mcp.regalert.today/mcp). Free with an account. How to connect ChatGPT, Claude or Cursor.

Similar documents from other regulators

Source: Central Bank of Nigeria — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works

More like this from CBN

CBN published 1 document in the last 30 days. We email you each new one the day it's published.

Topics
capital
fx

FX rules change often. Get an email the day any regulator we track changes its foreign-exchange rules.