CBN not converting FX in domiciliary accounts to naira

The Central Bank of Nigeria (CBN) is not converting foreign exchange held in banks’ customer accounts into naira. And it is official. It has no plans to direct banks to do so either.

The apex bank was dismissing claims to this effect in a statement it recently issued alleging that it had directed banks to convert all customers’ domiciliary accounts for dollar and other hard currency transactions into naira accounts.

Osita Nwanisobi, CBN’s director, corporate communications, noted that a fake circular with a falsified CBN logo dated 13th September 2021, and purportedly issued by its trade and exchange department directed that all Deposit Money Banks, International Money Transfer Operators (IMTOs), as well as members of the public, convert domiciliary account holdings into naira.

Clarifying the situation, the apex bank said, “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.”

Assuring that there is no plan in place by the CBN to convert the foreign exchange in the domiciliary accounts of customers into Naira with the aim to check the alleged shortage of availability of the United States Dollar (USD).

“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,” he added.

Similarly the CBN warned corporate bodies and members of the public against the unauthorised use of the bank’s logo for any purpose, as it stated that the appropriate authorities have been notified and culprits will be sanctioned.