Moody’s: Nigerian banks face $5bn foreign currency funding deficit

Moody’s: Nigerian banks face $5bn foreign currency funding deficit

Nigeria’s banks are facing foreign currency shortages because of low oil prices, volatile foreign inflows and lower remittances amid the pandemic. This is threatening to renew foreign currency liquidity pressures that blighted them during a previous oil crisis in 2016-2017, to hit $5 billion soon, Moody’s Investors Service said in a report. “Lower dollar inflows at a time when foreign currency borrowing will likely be more expensive for Nigerian banks will strain their foreign currency funding, despite substantial improvements compared to 2016,” said Peter Mushangwe, Analyst at Moody’s. “Our moderate…

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