Forex: CBN allays fears over domiciliary account deposits

The Central Bank of Nigeria (CBN) dismissed speculations that it planned to convert the foreign exchange in domiciliary accounts of customers into naira, as it assured members of the banking public that the CBN will monitor the commercial banks to ensure they meet the legitimate FX demands of customers. 

This is a follow up to Monday’s commencement of the directive to Deposit Money Banks (DMBs) to sell foreign exchange to customers, for Invisibles such as basic travel allowance, PTA, medical and tuition. etc.

Speaking with business correspondents in Abuja on Monday, the Bank’s Acting Director in charge of Corporate Communications, Osita Nwanisobi, disclosed that the CBN had put in place a monitoring mechanism to guarantee the seamless sale of foreign exchange to customers who supported their requests with relevant documentation.

He said the CBN had also extracted the commitment of the banks, through their Chief Executive Officers, that customers with legitimate requests will not be turned back.

Meanwhile, Nwanisobi dismissed insinuations in some quarters that the CBN planned to convert the foreign exchange in the domiciliary accounts of customers into Naira in order to check the purported shortage of availability of the United States dollars.

Nwanisobi, while disclosing that the CBN never planned to tamper with the foreign exchange deposits in the accounts of customers, insisted that those making such allegations were criminal speculators whose intention was to create panic in the foreign exchange market.

According to him, at no time did the CBN ever suggest or imply that it would tinker with the foreign exchange deposits of customers.

He, therefore, urged operators of domiciliary accounts and other members of the banking public to go about their legitimate foreign exchange transactions and disregard fictitious stories aimed at pitching them against the Bank and triggering chaos in the system.

It will be recalled that the CBN Governor, Godwin Emefiele at his post-Monetary Policy meeting (MPC) briefing on Tuesday, July 27, 2021, disclosed that the CBN would stop the weekly sale of foreign exchange to Bureaux de Change (BDCs) and that deposit money banks would henceforth sell to customers to meet their foreign exchange needs.

Sequel to the instruction, Banks Chief Executives met at the weekend and affirmed their readiness to meet the foreign exchange demands from genuine Foreign Exchange (FX) end-users as directed by the Central Bank of Nigeria (CBN).