The Central Bank of Nigeria (CBN) has debunked any plan to convert the $30billion deposits in domiciliary bank accounts to the local currency in order to save Naira from free fall against the United States Dollar.
A newspaper (not Diplomat Nigeria) had reported that there were strong signs that the Federal Government was planning a policy that will result in the conversion of foreign currencies in domiciliary accounts of citizens to Naira to stabilise the national currency, which earlier this week recorded its worst performance in history.
The report had said if it goes ahead with the plan, the government will order the conversion of foreign currencies sitting idly in individual and corporate organisations’ domiciliary accounts to naira at a rate to be determined by the CBN.
Citing unnamed ‘top Presidency sources’, it saidthat the move was meant to stabilise the naira, which recorded its biggest fall in the official Nigerian Foreign Exchange Market on Monday, depreciating by 24 per cent to close at N1,348 per dollar.
But, the apex bank said it has no plan to take such measure, dismissing the report as fake news.
The statement reads:
No Plans to Convert Domiciliary Account Holdings into Naira
The attention of the Central Bank of Nigeria (CBN) has been drawn to a story published by
a national newspaper alleging that the Federal Government is considering converting $30bn
domiciliary deposits to Naira.
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. 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.We want to assure the general public that CBN is working to build confidence and would
never do anything to undermine the currency and the economy.
We, therefore, urge all stakeholders to disregard stories aimed at causing panic in the system
and see them clearly for what they are – acts of national sabotage. We wish to advise, in the strongest terms, against the peddling of false reports that have the
potential to be disruptive to the economy. The Bank is the only designated authority for
monetary policy changes and will always advise on any policy change(s) before they are
brought into operation. The CBN is always open to answer questions about our policies.
Sidi-Ali, Hakama (Mrs.)
Ag. Director, Corporate Communications
