Key Takeaways
- Nigerian Central Bank refutes claims of circular directing banks converting Domiciliary account holding to naira
- CBN revealed in a statement that the rumours of the alleged directive were malicious and fake
- The shortage of US Dollars is causing a major strain on the Nigerian finance system
The internet was awash with a circular that allegedly directed banks and financial organizations to convert domiciliary account holdings to naira.
However, the Central Bank has released a statement to refute these claims on September 11.
The CBN stated that it would keep its promise to Nigerians not to convert domiciliary account holdings to naira.
However, it also added that the public and the financial sector should dismiss reports and documents suggesting otherwise as malicious and fake.
The report also noted that the rumours were designed to disrupt and cause chaos to the existing financial system.
The apex bank also warned corporations and members of the public to desist from using its logo for unauthorized activities.
Nigeria's import-based economy has placed a strain on the CBN to keep up with the growing demand for US dollars.
This has forced the apex bank to take restrictive measures to control the flow of the dollar and ensure that it circulates to those that require it.
However, this has led to shortages, and the dollar value to the naira has spiked by more than 20%.
At the time of publication, the price of USD/NGN is 550, up from 450/$ only a month ago.
There have been calls from the crypto community for the government to consider cryptocurrencies like Bitcoin and Ethereum.
However, cryptocurrencies remain banned, and the Central Bank is set to launch the e-Naira by October 1 as an alternative to digital currencies.
Do you believe this latest statements from the CBN?
