The Central Bank of Nigeria has announced a plan to introduce a singular foreign currency, FCY gateway bank, to centralize all correspondent banking activities and ease the FX crisis.
The CBN governor, Olayemi Cardoso, disclosed this recently during an interview with Arise Television.
He said the gateway bank will be a medium-term strategy to address lingering foreign exchange challenges.
Cardoso said the move will enhance the overall management of Nigeria’s international financial transactions.
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According to him, the FCY gateway bank will accompany a broader scheme of reforms, which the CBN has articulated as part of its overarching plan to improve the nation’s forex inflows and stabilize the Naira.
He said 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.
“Introducing a single FCY gateway bank to centralize all correspondent banking activities, currently dominated by two major banks in the corresponding banking space”, he said.