BREAKING: CBN stops banks from utilising FX gains caused by naira devaluation

• Significantly increase the naira value of banks’ foreign currency (FCY) assets and liabilities
• The CBN stated that a review of the foreign exchange regime change indicates that DMBs are in a position to profit from the policy.

The Central Bank of Nigeria (CBN) has ordered deposit money banks (DMBs) to stop using naira revaluation gains to fund dividend payments or other business operations.

As a result of the policy’s ability to significantly raise the naira value of banks’ foreign currency (FCY) holdings and liabilities, according to the CBN, the DMBs are in a position to profit from the shift in the foreign exchange regime.

This is a developing story…