Nigeria’s central bank refutes claim to convert $30bn domiciliary deposits to naira

The Central Bank of Nigeria (CBN) clarified its position through a post on X, refuting a Saturday report that suggested the potential conversion of foreign currencies in citizens’ domiciliary accounts to naira as a measure to address the ongoing foreign exchange crisis in the country.

According to the report, a source had said the government will order the conversion of foreign currencies sitting idly in individuals’ and corporate organisations’ domiciliary accounts to naira — at a rate to be determined by the CBN.

Addressing the report, the CBN said there are “No plans to convert $30bn domiciliary deposits to naira. This news is fake!’’

Similarly, the information is conveyed in a statement issued by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.

“There is no iota of truth in the claims of Punch Newspaper that the Federal Government plans to convert foreign exchange in depositors’ domiciliary accounts to naira.

“The publication of such falsehood at a time when the government is working to restore economic stability and confidence in the national currency is tantamount to economic sabotage.

“For the avoidance of doubt, I emphasize that depositors’ foreign currency in their domiciliary accounts will not be converted to naira.”

In the past week, the apex bank gave series of directives to address the FX crisis in Africa’s largest economy and prevent further decline in the value of the naira.

The bank released a circular addressing suspected cases of excessive foreign currency speculation and hoarding from Nigerian banks. It issued an order instructing banks to offload their excess dollar reserves by February 1, 2024.

It also prohibited banks and fintechs from conducting international money transfers, a move viewed as a strategic step to tackle Nigeria’s FX crisis.