Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, has said Nigeria will require a singular foreign currency gateway bank to centralise all correspondent banking activities.
He said this was one of the medium-term strategies the bank was coming up with, as part of its short and medium-term strategies for fixing Nigeria’s foreign exchange challenges.
Cardoso who made this known in a television interview on Monday, said the single FCY gateway bank will centralise all correspondent banking activities, currently dominated by two major banks in the corresponding banking space.
He further explained that correspondent banking, which facilitates international trade and economic activities by enabling domestic banks to conduct business and provide services to their clients across borders, is presently under the dominion of two major banks within the Nigerian banking landscape.
Cardoso added that in response to the evolving landscape of digital finance, the CBN is also intensifying its efforts to strengthen surveillance and technological capabilities to effectively monitor cryptocurrency transactions.
The CBN, according to him, is exploring innovative mechanisms to incentivise individuals who hold foreign currency outside the formal banking system, adding that by encouraging the deposit of these funds into the banking system, the CBN aims to deepen the forex market with increased liquidity.
The CBN governor also hinted of the establishment of an Investor Relations Group (IRG), modeled after the successful framework employed by the Philippines, saying the objective is to elevate Nigeria’s credit profile on the global stage and to position the country as a prime investment destination.
Cardoso added that by enhancing investor communications and building stronger relationships with the international investment community, the IRG will play a vital role in attracting foreign direct investments, thereby bolstering the country’s economic resilience.
