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HomeBankingCBN Denies Plan To Convert $30bn Deposits in Domiciliary Accounts To Naira

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

Dollars,  Naira

 

 

 

 

By Our Reporter

The Central Bank of Nigeria (CBN) has denied any plan to convert the $30billion deposits in domiciliary bank accounts to the local currency (naira)in order to save the currency from free fall against the United States Dollar.

A national newspaper had earlier reported on Saturday that there were strong indications that the Federal Government was mulling 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 said if it goes ahead with the plan, the government will order the conversion of foreign currencies sitting idle in individual and corporate organisations’ domiciliary accounts to naira at a rate to be determined by the CBN.

Citing unnamed ‘top Presidency sources’, it wrote that 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.

In a swift reaction, the apex bank said it has no plan to take such measure, outrightly dismissing the report as fake news.

Taking to its verified X handle (formerly Twitter) on Saturday to react to the report, the CBN wrote: “No plans to convert $30bn domiciliary deposits to naira. This news is fake.”

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