No plans To Convert $30bn Domiciliary Deposits To Naira — CBN
CBN says there are no plans to convert $30 billion in domestic deposits to naira
There are no intentions to convert the $30 billion in deposits in domiciliary accounts to naira, according to the Central Bank of Nigeria (CBN).
According to a report published on Saturday, the apex bank is reportedly considering a policy that would convert foreign currencies held in citizens' residential accounts into naira in order to stabilize and boost liquidity in the foreign exchange market.
"No plans to convert $30bn domiciliary deposits to naira. This news is fake!" CBN said.
The government will order the conversion of foreign currencies that are idle in the domiciliary accounts of individuals and corporate organizations to naira, at a rate that will be set by the CBN, a source told the report.
But the apex bank refuted the report and labeled it as fake news in a post on its official X handle on Saturday.
There have been rumors that since the CBN has been taking steps to bring the foreign exchange (FX) market back to normal, people's deposits denominated in dollars might be in danger.
The CBN ordered banks to sell dollars on January 31, 2024, in order to stop losses.
The CBN had stated that banks' total foreign currency assets and liabilities could not exceed “20% short or 0% long of shareholders' funds” as the net open position (NOP) limit.
According to the apex bank, the decision was made because of worries about banks' growing foreign exchange exposure through their NOPs.
Also, the regulatory body eliminated the maximum permitted exchange rate quoted by international money transfer companies (IMTOS).
IMTOS was instructed by the CBN to utilize the going rates in Nigeria's foreign exchange market.
The official section of the foreign exchange market saw an increase in the value of the naira on February 2, 2024, with the currency closing at N1,435 per dollar, following the announcement of the policies.
No comments:
Leave comment here