Naira slide stokes fears of domiciliary account clampdown
The steep fall of the naira in recent weeks coupled with the measures taken to prop up the embattled currency has reignited talks that the government may come after domiciliary accounts.
Markets Reporters previously reported that the decline in dollar liquidity has dragged the naira to the lowest since March 20 on the official market, citing data from Lagos-based securities exchange FMDQ.
The naira closed at 1,466.31 per dollar on Friday on the Nigerian Autonomous Foreign Exchange Market, compared to 1,381.74/$ a week earlier.
“A central bank that goes after embassies, kidnaps crypto traders and manipulates its currency for short term gains, will surely go after dorm accounts. It’s just a matter of time, let that 2k support break. They won’t just block the account, they’d arrest you for holding dollar,” said an X user with the handle @MikaelCBernard and over 52,700 followers.
The Economic and Financial Crimes Commission has asked foreign missions based in Nigeria to stop charging visa and other consular services in foreign currencies, saying the refusal by some missions to accept the naira is illegal.
“They will go after domicillary accounts las las….Pin this tweet! I am for all sensible solutions. A strong naira is in my best interest!” Akin Olaoye with the handle @akintollgate and over 117,000 followers wrote on Saturday.
The Central Bank of Nigeria said in February that it had no plans to convert domiciliary account holdings into naira.
While reacting to a story published by a national daily, the CBN assured the public that it was working to build confidence and would never do anything to undermine the currency and the economy.
