CBN denies planning to convert currencies in domiciliary accounts

The Central Bank of Nigeria (CBN) has denied in very strong terms that its planning converting foreign exchange (FX) in the domiciliary accounts of customers into naira.

The apex bank in a circular issued and signed by its Director Corporate Communication, Mr Osita Nwanisobi, on Saturday, said the speculation is false and aimed at triggering panic in the foreign exchange market.

Nwanisobi stressed that the apex bank would never contemplate such a line of action.

“We wish to reiterate that the bank has not contemplated, and will never contemplate, any such line of action. The speculation is a completely false narrative aimed at triggering panic in the foreign exchange market,” the circular reads.

This is the second time the apex bank is denying such speculation since the discontinued sales of FX to Bureaux De Change operators (BDCs) operators in July.

It had accused BDCs of working with corrupt people to conduct money laundering in Nigeria.

Despite the decision, panic in the foreign exchange market has caused a wide margin between the naira and the dollar on the official and black markets.

In August, the apex bank also assured members of the public that there was no plan to convert the foreign exchange in the domiciliary accounts of customers into naira to check the purported shortage of availability of the dollars.

“Operators of domiciliary accounts and other members of the banking public are therefore advised to completely disregard these fictitious documents and malicious rumours, and go about their legitimate foreign exchange transactions,” the circular adds.

“The public should note that any circular issued by the Central Bank of Nigeria (CBN) is posted on its website (www.cbn.gov.ng) for the attention of the general public

“We also wish to warn corporate bodies and members of the public against the unauthorized use of the Bank’s logo for any purpose whatsoever.

“We have drawn to the attention of appropriate authorities to this, and culprits will be sanctioned accordingly.”