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No plan to convert funds in domiciliary accounts to naira – CBN

…Alleges sabotage by vested interests


Media reports that the Central Bank of Nigeria (CBN) planned to convert about $30 billion in the accounts to naira to halt the Nigerian currency’s free fall, is fake.


This is as Nigeria’s central bank on its X account on Saturday said there was no plan to convert the funds in domiciliary accounts to naira adding, “This news is fake”.

The CBN in recent weeks has introduced policies to strengthen Nigeria’s naira to a dollar and other foreign exchange.

Early this week, the parallel market rates shot up to between N1,400 and N1,450 to a dollar.

However, in a move to salvage the situation, the CBN ordered banks to sell their excess dollar stock latest February 1, 2024.

The CBN in a another circular on Wednesday warned lenders against hoarding excess foreign currencies for profit.

Sources within the CBN disclosed that there were indications that some commercial banks hold long-term foreign exchange positions to enable them profit from the volatile movements of exchange rates.

The CBN thereafter stopped daily Cash Reserve Ratio debits and will be adopting an updated Cash Reserve Requirement mechanism.

The move made pundits to speculate in media reports that the CBN would target funds in Nigerian domiciliary accounts.

“This allegation is absolutely false and aims to trigger panic in the foreign exchange market, which the CBN is working assiduously to stabilize, as evidenced by its recent work and policy directions,” the Apex bank said in a statement.

A report, on Saturday, claimed that the CBN is considering a policy that will result in the conversion of foreign currencies in domiciliary accounts of citizens to naira to stabilise and increase liquidity in the FX market

The report quoted a source that claimed that the government will order the conversion of foreign currencies in individuals’ and corporate organisations’ domiciliary accounts to a naira equivalent determined by the CBN.

“Similar false narratives have been spread on the work of the CBN over the past few months and it is clear that vested interests are determined to sabotage our efforts,” the bank said.

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