CBN Denies Plan To Convert $30bn Domiciliary Deposits To Naira

Confidence UbaniFebruary 3, 20241 Mins read615

The Central Bank of Nigeria (CBN) has refuted claims about converting the $30 billion in domiciliary bank deposits to local currency.

In a statement shared via the official X handle of the apex handle, it stated:

“No plans to convert $30bn domiciliary deposits to naira. This news is fake!”

This claim is contrary to a news report by Punch alleging that the Nigerian government was considering tampering with domiciliary accounts to stabilize the Naira’s recent decline. The past few days have seen a lot of policy changes reportedly aimed at saving the Naira‏ from free fall against the United States Dollar.

This comes in the backdrop of the naira’s biggest fall in the official Nigerian Foreign Exchange Market on Monday, depreciating by 24 percent to close at N1,348 per dollar. Following this development, customs increased export duty by 43%, and the Central Bank of Nigeria imposed a policy that prohibits fintechs from continuing international transfer services.

Speculations that the apex bank is mulling a policy that will result in the conversion of foreign currencies in domiciliary accounts of citizens to Naira are not exactly bizarre. If this change is implemented, the government will order the conversion of foreign currencies sitting idly in individual and corporate organizations’ domiciliary accounts to naira at a CBN-determined exchange rate.

While the CBN explicitly dismisses the idea and labels the news as fake, West Africa Weekly is engaging in conversations to investigate the veracity of these claims.