The Central Bank of Nigeria (CBN) has directed banks to strictly comply with recent foreign exchange (FX) policy reforms.

The CBN disclosed this in a letter addressed to banking institutions and signed by the Acting Director, Banking Supervision, Dr ADETONA ADEDEJI.

The apex bank reiterated that banks are required to exercise utmost prudent financial management and risk mitigation and set aside foreign currency revaluation gains as a counter-cyclical buffer to cushion any adverse movements in the foreign exchange rate.

The CBN further warned banks not to utilize such FX revaluation gains to pay dividends or meet operating expenses.