Fear Grips Nigerians Over Rumour That CBN May Stop the Use of Domiciliary Accounts

Date:

In a climate of uncertainty and growing apprehension, Nigerians are grappling with rumours that the Central Bank of Nigeria (CBN) may soon discontinue the use of domiciliary accounts. This has led to widespread fear and speculation across the country, leaving citizens and businesses uncertain about the future of their foreign currency holdings.

Domiciliary accounts are a vital component of Nigeria’s financial landscape, allowing individuals and businesses to hold foreign currencies, such as the US dollar, the British pound, and the euro, for various purposes, including international transactions, travel, and safeguarding against fluctuations in the Nigerian Naira.

The rumours began to circulate over the weekend, with social media platforms and instant messaging services playing a significant role in disseminating the information. However, the CBN has yet to issue an official statement or clarification on the matter.

Many Nigerians with domiciliary accounts are concerned about the potential implications if the rumors prove to be true. These fears include:

  1. Currency Devaluation: Nigerians are concerned that the discontinuation of domiciliary accounts could be a sign of deeper economic instability, potentially leading to further depreciation of the Naira.
  2. Business Uncertainty: Companies that rely on domiciliary accounts for international trade and foreign investments are uncertain about how they would operate if such accounts were to be discontinued.
  3. Remittances: Nigerians living abroad who use domiciliary accounts to receive foreign remittances are concerned about their ability to access these funds if the accounts were phased out.
  4. Legal and Regulatory Implications: The potential discontinuation of domiciliary accounts raises questions about the legal and regulatory implications for existing account holders.

To gain more clarity on the situation, Moneyamebo reached out to some financial experts and economists, they all agreed that if the rumour becomes true, the Naira will fall to an unimaginable low as people will resort to keeping their foreign currencies at home. It is crucial for the Central Bank to issue a statement to clarify the situation and provide guidance to the public.

Business leaders and associations are calling for transparency and clarification from the CBN. As Nigerians anxiously await official word from the Central Bank, financial analysts are advising individuals and businesses with domiciliary accounts to closely monitor the situation and consider diversifying their foreign currency holdings or exploring alternative financial instruments.

It remains to be seen whether the CBN will address these rumuors and concerns, but it is clear that the uncertainty surrounding the status of domiciliary accounts is creating significant anxiety among the Nigerian populace.

The Naira traded at ₦1,910 to the US Dollar on P2P platforms over the weekend.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

Popular

Latest Updates

More like this
Related

bitcoin
Bitcoin (BTC) $ 64,302.23 0.27%
ethereum
Ethereum (ETH) $ 3,504.30 0.58%
tether
Tether (USDT) $ 0.999938 0.05%
bnb
BNB (BNB) $ 590.18 0.82%
solana
Solana (SOL) $ 134.35 0.00%
staked-ether
Lido Staked Ether (STETH) $ 3,503.67 0.60%
usd-coin
USDC (USDC) $ 1.00 0.01%
xrp
XRP (XRP) $ 0.487198 0.42%
dogecoin
Dogecoin (DOGE) $ 0.124075 0.08%
the-open-network
Toncoin (TON) $ 7.30 2.40%