The CBN advises against securing naira loans with foreign currency as security

Foreign bank guarantees, such as standby letters of credit, would also be accepted.Bank clients have been cautioned by the Central Bank of Nigeria (CBN) not to use foreign cash as collateral for Naira loans.The warning was issued in a statement on Monday in Abuja by Adetona Adedeji, the acting director of the CBN's Banking Supervision Department. According to Adedeji, the practice of utilising collateral denominated in foreign currencies for Naira loans would only be permitted in the event that the Federal Government issues Eurobonds. He said that guarantees of foreign banks, including standby letters of credit would also be allowed. “In this regard, all loans currently secured with dollar-denominated collaterals other than as mentioned above should be wound down within 90 days.