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CBN denies planned conversion of $30bn domiciliary deposits to naira

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The Central Bank of Nigeria, CBN, has denied plans to convert $30 billion deposits in domiciliary accounts to naira.

CBN was reacting to a report that it was considering a policy that will convert the foreign currencies of Nigerians in domiciliary accounts to naira.

The report claimed that the move would stabilise and increase liquidity in the forex market.

A source had said the government would 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.

Reacting, the CBN distanced itself from such a move.

Posting on X, CBN wrote: “No plans to convert $30bn domiciliary deposits to naira. This news is fake!”

There have been speculations that dollar-denominated deposits of individuals may be at risk following recent moves by the CBN to restore normalcy in the foreign exchange (FX) market.

On January 31, 2024, the CBN directed banks to sell dollars to prevent losses

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