The proposal to convert $30 billion in deposits in domiciliary accounts to naira has been rejected by the Central Bank of Nigeria or CBN.

The CBN reacted in response to news that it was thinking of implementing a policy to convert Nigerians’ foreign cash held in their domiciliary accounts into naira.

According to the article, the action will improve liquidity and stabilize the foreign exchange market.

Naira appreciates against US Dollar amid CBN intervention

According to a source, the government would mandate that private citizens’ and corporate entities’ foreign money lying quietly in the domiciliary accounts be converted to naira at a rate that the CBN would set.

The CBN reacted by distancing itself from this action.

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

There have been rumours that since the CBN has taken steps to bring the foreign exchange (FX) market back to normal, people’s savings denominated in dollars could be in danger.

The CBN ordered banks to sell dollars on January 31, 2024, to stop losses.

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