The Central Bank of Nigeria (CBN) has said that it has no plan to convert $30 billion domiciliary deposits into Naira.
In a statement by its acting spokesperson, Sidi Ali, on Saturday, the financial regulator said that it was working hard to stabilise the foreign exchange market “as evidenced by its recent work and policy directions”.
The CBN assured Nigerians that it was working to build the confidence of citizens in the economy and would not do the contrary.
“We want to assure the general public that CBN is working to build confidence and would never do anything to undermine the currency and the economy…
“The bank is the only designated authority for monetary policy changes and will always advise on any policy change(s) before they are brought into operation. The CBN is always open to answer questions about our policies”.
The PUNCH had earlier quoted the CBN as expressing concern over the growth in foreign currency exposures of banks through their Net Open Position.
The newspaper made reference to a circular by the apex bank to all the banks. It was signed by its Director of Trade and Exchange, Dr. Hassan Mahmud; and the Director of Banking Supervision. Mrs. Rita Sike.
The bank noted that “such foreign currency positions expose banks to foreign exchange and other risks”.
CBN stated that to ensure that these risks are well managed and avoid losses that could pose material systemic challenges, it has issued new prudential requirements for banks to comply with.
The apex bank said that the Net Open Position limit of the overall foreign currency assets and liabilities taking into cognisance both those on and off-balance sheet should not exceed 20 per cent short or 0 per cent long of shareholders’ funds unimpaired by losses using the Gross Aggregate Method.
But the CBN said on Saturday that the allegation was “absolutely false and aims to trigger panic in the foreign exchange market, which the CBN is working assiduously to stabilize, as evidenced by its recent work and policy directions.
Similar false narratives have been spread on the work of the CBN over the past few months and it is clear that vested interests are determined to sabotage our efforts.
“We, therefore, urge all stakeholders to disregard stories aimed at causing panic in the system and see them clearly for what they are – acts of national sabotage”.
