Dollars Are Safe in Domicilairy Account CBN Assures Customers

By Tosin Olatokunbo

The Central Bank of Nigeria, CBN, has allayed fears that it was planning to convert foreign currencies in the domiciliary accounts of bank customers to Naira.

The Godwin Emefiele-led apex bank clarification came amidst speculation that it was planning to convert foreign currency in those accounts to naira as part of the strict measures to stabilize the naira, which traded for N514 to a dollar at the parallel market at the end of last week.

Recent tough measures adopted by the CBN to shore up the national currency include stoppage of sale of dollars to Bureau De Change, BDC; the Bank now supplies the American Green Back as the Dollar is called to commercial banks who sell directly to customers at the apex bank’s approved late.

Checks by the magazine, however, indicate that the measure has yet to materialized as the naira continue its free fall at the unofficial market also known as parallel market.

This must have prompted the suggestion that the CBN is planning is to introduce other measures to save the naira, including the conversion of foreign currency belonging to customers to naira.

Speaking on the issue, Osita Nwasinobi, CBN’s Director of Corporate Communications, said in a statement on Saturday that such rumour only exists in the imagination of those peddling them.

According to a circular titled “CBN categorically denies, and strongly condemns peddlers of, rumour on domiciliary account holdings,” the apex bank said it has not issued any statement contrary to what the public has been made to believe.

“The attention of the Central Bank of Nigeria, CBN, has been drawn to a fake circulation, in social media circles, of a circular with a fake CBN logo curiously dated September 13, 2021, and purportedly issued by its Trade and Exchange Department to the effect that all Deposit Money Banks, International Money Transfer Operators, IMTOs, and members of the public are to convert domiciliary account holdings into naira,” the apex bank said.

It further stated that “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. It will be recalled that the Bank had previously assured members of the public that there was no plan whatsoever to convert the foreign exchange in the domiciliary accounts of customers into Naira in order to check purported shortage of availability of the United States dollars. Read it HERE.

“Operators of domiciliary accounts and other members of the banking public are therefore advised to completely disregard these fictitious documents and malicious rumors, and go about their legitimate foreign exchange transactions, as we have no doubt that these rumors are only aimed at impugning the integrity of the CBN and activating chaos in the system.

The CBN warned the members of the public to ignore fake information.

The Bank said “the public should note that any circular issued by the Central Bank of Nigeria, CBN, is posted on its website (www.cbn.gov.ng) for the attention of the general public.

“We also wish to warn corporate bodies and members of the public against the unauthorised use of the Bank’s logo for any purpose whatsoever. We have drawn the attention of appropriate authorities to this and culprits will be sanctioned accordingly.”

Meanwhile, the CBN, last week directed travellers who buy foreign exchange from banks for travel purposes but fail to embark on the trip two weeks after their scheduled travel date must to return the forex to the banks, as part of its ‘Adherence to forex sale policy’.

this was contained in an email sent to customers by commercial banks in the country.

One of the banks said in an email to customers that “We have been directed by the Central Bank of Nigeria to inform all our customers that unethical practices to circumvent the new CBN policy on the sale of forex, such as the presentation of false travel documents, visas, and the cancellation of flight tickets after purchasing personal travel allowance and business travel allowance, will no longer be tolerated.

“Defaulting customers who present fraudulent travel credentials or cancel their tickets and fail to refund the purchased PTA and BTA within two weeks, as stated in the signed customer declaration form, will have their identities and bank verification numbers published.

“We aim to implement this policy immediately as an organisation that is fully compliant with the Central Bank of Nigeria’s rules and regulations.