Mohammed Shosanya
The Central Bank of Nigeria,will soon introduce a new set of foreign exchange laws and guidelines to address naira depreciation and achieve exchange rate stability in the country.
Governor of Central Bank of Nigeria, CBN, Mr Yemi Cardoso,disclosed this in Lagos in a keynote speech at the 2023 Annual Bankers Dinner of the Chartered Institute of Bankers of Nigeria, CIBN.
According to him,the CBN 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.
He added 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.
Cardoso said the apex bank will further tighten money supply for the next two quarters in order to curtail the challenge of rising inflation in Nigeria.
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.
He said:“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”
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.”
