"CBN Will Introduce New FXLaws, Guidelines To Address Naira Depreciation"-CBN Gov, Yemi Cardoso

Date: 25-11-2023 9:13 am (3 months ago) | Author: Mister Jay Wonder
- at 25-11-2023 09:13 AM (3 months ago)
(m)

Governor of Central Bank of Nigeria, CBN, Mr Yemi Cardoso said yesterday that the apex bank will soon introduce a new set of foreign exchange laws and guidelines to address naira depreciation and achieve exchange rate stability.

The CBN, according to him, will also conduct a new recapitalisation exercise for the banking industry, by directing banks to increase their minimum capital base to a level sufficient to support the vision of a $1trillion economy.

Cardoso disclosed this in Lagos in a keynote speech at the 2023 Annual Bankers Dinner of the Chartered Institute of Bankers of Nigeria, CIBN.

Cardoso also disclosed that the CBN will introduce a new licensing framework for fintechs and payment banks, warning that operators found engaging in activities outside their licenses will be sanctioned.

Citing the need to curtail the challenge of rising inflation, Cardoso said the apex bank will further tighten money supply for the next two quarters. He added that to further reduce excess cash in the banking system the management of the CBN has approved and will soon conduct another round of liquidity mop up via issuance of Open Market Operations, OMO, treasury bills.

His words:
“Our monetary policies will aim to achieve price stability, foster sustainable economic growth, stabilize the exchange rate of the naira, and reduce interest rates to facilitate borrowing and investments in the real sector. In order to ensure the proper functioning of domestic and foreign currency markets, clear, transparent, and harmonized rules governing market operations are  essential. “New foreign exchange guidelines and legislation will be developed, and extensive consultations will be conducted with banks and FX market operators before implementing any new requirements.

“Considering the policy imperatives and the projected economic growth, it is crucial for us to evaluate the  adequacy of our banking industry to serve the envisioned larger economy. It is not just about the stability of the financial system in the present moment, as we have already established that the current assessment shows stability. “However, we need to ask ourselves: Will Nigerian banks have sufficient capital relative to the financial system’s needs in servicing a $1.0 trillion economy in the near future? In my opinion, the answer is “No!” unless we take action. “Therefore, we must make difficult decisions regarding capital adequacy. As a first step, we will be directing banks to increase their capital.”


On new licensing framework for fintechs, Cardoso said: “Technology will continue to play a critical role in delivering financial services and enhancing financial inclusion.  “However, recent developments in the payment services landscape have raised concerns regarding the use of technology and the existing licensing and regulatory framework. We have observed that some licensees are operating outside the approved activities, breaching the boundaries set for them. “Any intentional or unintended noncompliance will be subject to sanctions, as operators have the responsibility to ensure that they are licensed for the activities they undertake. “Concurrently, as we conduct a comprehensive review of the licensing framework for payment services, we will engage in extensive consultations to develop a new regulatory and compliance framework that is suitable for the technology-driven payment services sector.”


Posted: at 25-11-2023 09:13 AM (3 months ago) | Addicted Hero
- Benti247 at 25-11-2023 10:01 AM (3 months ago)
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With all your yeye policies Naira is depreciating more and more
Posted: at 25-11-2023 10:01 AM (3 months ago) | Gistmaniac
Reply
- gogoman at 25-11-2023 11:19 PM (3 months ago)
Online (m)
do am ooooooo
Posted: at 25-11-2023 11:19 PM (3 months ago) | Grande Master
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fire TRENDING GISTS fire

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