FG, CBN deny plans to convert $30 billion domiciliary deposits to naira


The Federal Government and the Central Bank of Nigeria (CBN) have denied that there are plans to convert $30 billion domiciliary deposits to naira.

This is a reaction to reports that the Federal Government and the apex bank were considering converting domiciliary accounts to naira as part of measures to solve the foreign exchange (forex) crisis and stop the crash of the naira.

This disclosure is contained in a statement by the Minister of Finance and the Coordinating Minister of the Economy, Wale Edun, on Saturday, where he said there was no iota of truth in the report, dismissing it as falsehood.

The CBN also in a post on its official X (formerly Twitter) account on Saturday, February 3, 2024, described the report as fake.

Edun in his statement said, “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.”
The CBN in its post said,

‘’No plans to convert $30bn domiciliary deposits to naira. This news is fake!’’

Reports aimed at causing panic in the forex market

The acting Director, Corporate Communications of the CBN, Mrs. Hakama, Sidi-Ali, in a statement described the allegation as false and aimed at causing panic in the foreign exchange market.

She said, ‘’The attention of the Central Bank of Nigeria (CBN) has been drawn to a story published by a national newspaper alleging that the Federal Government is considering converting $30 billion domiciliary deposits to Naira.

‘’This allegation is absolutely false and aims to trigger panic in the foreign exchange market, which the CBN is working assiduously to stabilize, as evidenced by its recent work and policy directions.

‘’Similar false narratives have been spread on the work of the CBN over the past few months and it is clear that vested interests are determined to sabotage our efforts.

‘’We want to assure the general public that CBN is working to build confidence and would never do anything to undermine the currency and the economy.

‘’We, therefore, urge all stakeholders to disregard stories aimed at causing panic in the system and see them clearly for what they are – acts of national sabotage.

‘’We wish to advise, in the strongest terms, against the peddling of false reports that have the potential to be disruptive to the economy. The Bank is the only designated authority for monetary policy changes and will always advise on any policy change(s) before they are brought into operation.

‘’The CBN is always open to answer questions about our policies.’’