Friday, February 27

Nigerian Banks To Start Mass Sacking Due To Naira Fall

Indications emerged yesterday that banks in the country may consider retrenchment and other cost-cutting measures if nothing concrete is done to arrest the free fall of Naira due to Federal Government devaluation policy.

This is just as the exchange rate of naira to a dollar remained at N215 at the black market in Lagos. Penultimate Wednesday, the Central Bank of Nigeria (CBN) announced the closure of foreign windows in the country in order to save the nation's economy from collapse due to the Naira fall.
The policy was greeted with mixed feelings by experts and stakeholders in the nation's economy.

Our correspondent gathered that the downward swing of Naira in recent time is hitting the banks below the belt and would have no choice than to lay off some staff and cut some of their expenses in case the situation degenerates. It was further gathered that the cost-cutting measures would be necessary in order to pave way for the banks to remain afloat in business.

President of the Association of Senior Staff of Banks, Insurance and Financial Institution (ASSBIFI), Comrade Sunday Salako told our correspondent that banks and other financial institutions in the country are not immune from the shocks created by the Naira fall.
He said: "There is no way the Naira fall in the country will not affect the banks. Most of the banks in Nigeria also borrowed in foreign denominated currencies. They have to pay more in Naira now to service the loan because of the fall in Naira value. That will have a toll on the balance sheets of the banks.

Source: Dailytrust

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