CBN denies report it plans to convert $30bn domiciliary deposits to Naira

Our reporter/ The Central Bank of Nigeria (CBN) on Saturday denied reports that it plans to convert $30bn domiciliary deposits to naira.

The denial followed reports that the federal government and the apex banks were considering the conversion of foreign currencies in domiciliary accounts of citizens to naira to stabilise Nigeria’s currency, which earlier this week recorded its worst performance in history.

But, in a post on X (formerly known as Twitter) the apex bank dismissed the report as “fake news”, and urged the public to disregard such speculations.

“No plans to convert $30bn domiciliary deposits to naira. This news is fake!,” the post reads.

The apex bank’s reaction comes two days after it ordered Deposit Money Banks (DMBs) to sell their excess dollar stock latest February 1, 2024, as part of moves to stabilise the nation’s volatile exchange rate.

The CBN had a circular released on Wednesday warned lenders against hoarding excess foreign currencies for profit.

In the circular titled, “Harmonisation of Reporting Requirements on Foreign Currency Exposures of Banks”, the apex bank raised concerns over the growing trend of banks holding large foreign currency positions.

The apex bank had earlier warned banks and FX dealers against reporting false exchange rates, among others.

The CBN accused banks of holding excess foreign exchange positions. It gave lenders until February 1, 2024 to sell off excess dollars in their vault.