CBN to Launch FCY Gateway Bank for Better Forex Management
The Central Bank of Nigeria (CBN) has revealed its plan to launch a foreign currency (FCY) gateway bank that will centralize all correspondent banking activities in the country. The CBN governor, Olayemi Cardoso, made this announcement in a recent interview with Arise Television.
He explained that the FCY gateway bank will be a medium-term solution to the persistent foreign exchange (forex) challenges that Nigeria faces. He said the FCY gateway bank will improve the efficiency and effectiveness of Nigeria’s international financial transactions.
He added that the FCY gateway bank will be part of a wider reform agenda that the CBN has designed to boost the forex inflows and stabilize the Naira. He said correspondent banking, which allows domestic banks to offer services to their clients across borders and facilitate international trade and economic activities, is currently controlled by two major banks in Nigeria.
He said the FCY gateway bank will break the monopoly of these two banks and create a more competitive and transparent correspondent banking system. He said the FCY gateway bank will benefit the Nigerian economy and the Naira.
