Bank Directors Supports CBN on Foreign Currency Hoarding

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The Bank Directors Association of Nigeria (BDAN) has expressed support for the Central Bank of Nigeria’s (CBN) directive instructing commercial banks to cease “hoarding” foreign currencies. The CBN had raised concerns over banks’ escalating foreign currency exposure through Net Open Positions (NOP) and issued a circular titled “Harmonisation of Reporting Requirements on Foreign Currency Exposures of Banks.”

BDAN acknowledges the directive as a crucial step in effective foreign currency exposure management and emphasizes its alignment with other prudential requirements outlined in the circular. The CBN’s regulatory measures aim to mitigate potential losses that could pose significant systemic challenges and reinforce risk management, transparency, and accountability in the financial industry.

BDAN pledges continuous collaboration with the CBN and other stakeholders to foster a dynamic and resilient financial ecosystem that serves the interests of all Nigerians.

Source: Punch

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