CBN denies claim that it is planning to convert all domiciliary accounts into naira ones

CENTRAL Bank of Nigeria (CBN) officials have refuted claims alleging that the federal government is contemplating the conversion of $30bn currently being held in domiciliary deposits in commercial banks across the country into naira.

Last week, it was widely reported that the federal government was contemplating the move in response to the growing scarcity of foreign exchange in the country. Apparently, ministers saw this as a means of also propping up the naira and halting what was becoming an incessant slide against the US dollar.

CBN spokesman Hakama Ali, said: “The attention of the Central Bank of Nigeria has been drawn to a story published by a national newspaper alleging that the federal government is considering converting $30bn domiciliary deposits to naira. Similar false narratives have been spread about 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." He added that the allegation is false and only aims to trigger panic in the foreign exchange market, which the CBN is working assiduously to stabilise, as evidenced by its recent work and policy directions.

Expressing concern over a series of narratives purportedly targeting the CBN’s efforts, the bank expressed worry over what it described as a consistent pattern of misinformation driven by vested interests seeking to undermine economic stability. Furthermore, the CBN urged the public to dismiss such narratives as acts of national sabotage, warning against the dissemination of what it called false information that could disrupt the economy.

Last week, as part of moves to further liberalise the Nigerian foreign exchange market, the CBN lifted exchange rate restrictions for international money transfer operators. Also, the bank ordered deposit money banks to sell their excess dollar stocks by 1 February.