The Central Bank of Nigeria (CBN) has explained that it had not stiopped the acceptance of foreign currency cash deposits by Deposit Money Banks (DMBs).
The bank also explained that customers can deposit dollar into their domiciliary accounts, but are not allowed to transfer it to another party.
The Corporate Communications Director of CBN, Mr Isaac Okorafor, said in a statement: “Only electronic fund transfers into Domiciliary accounts can be transferred from such accounts while cash deposits into such accounts can only be withdrawn in cash also.’’
He urged stakeholders and other interested parties to always endeavour to seek clarification on issues and avoid speculative tendencies which are detrimental to the financial system.
Analyzing the state of the economy and foreign exchange market, a member of the CBN-led Monetary Policy Committee, Prof. Adeola Adenikinju, had expressed fears over inflation persistence, the continuous decline in foreign reserves, the liquidity surfeit in the economy, the negative current account balance, the poor state of the fiscal sector, fall in prices of financial assets, and the bearish outlook for the oil sector.
He said the foreign exchange markets were generally stable aided by the foreign exchange interventions of the CBN.
Foreign reserves fell from $41.54 billion in December 2018 to $38.07 billion in December 2019. Also, the current account balance by third quarter, 2019 was -2.24 per cent of Gross Domestic Product (GDP). This was better than -3.27 per cent in second quarter, 2019.
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