Breaking News: CBN Stops Use of Foreign Currencies As Collateral for Naira Loan
The Central Bank of Nigeria has issued a directive to all banks in the country, instructing them to cease accepting foreign currencies as security for naira-denominated loans.
This guideline was communicated through a circular posted on the central bank's website on Monday.
The regulatory body noted a trend of customers utilizing foreign currencies as collateral for naira loans, and as a result, has prohibited this practice with instant effect.