Banks begin reduction of rates on FX deposits as supply increases

BUSINESS DAY

Banks are beginning to reduce their interest rates on foreign exchange (FX) deposits as dollar supply improves.

Olusegun Alebiosu, chief executive officer of First Bank of Nigeria, revealed during an executive roundtable hosted by PwC and BusinessDay on Thursday, noting that the Central Bank of Nigeria (CBN) returned some FX swaps to some banks in January 2025.

“This move signals that banks now have sufficient FX to return to customers, contributing to a drop in foreign deposit currency rates,” he said.

A senior bank official in another Tier-1 bank confirmed this, noting that FX supplies have improved across banks, easing pressure on the economy.

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