Naira Redesign: Why CBN Should Bar Personal Domiciliary Accounts – Economist Speaks

Naira Redesign: Why CBN Should Bar Personal Domiciliary Accounts – Economist Speaks

An economist, Tope Fasua has urged the Central Bank of Nigeria to bar individuals from operating domiciliary accounts in order to stabilise the naira and quash currency speculation.

“Personal dorm accounts are mostly unnecessary; only companies that are doing international trade transactions or financial market companies should be able to hold dorm accounts because they have a reason to,” he said on Channels Television’s Sunrise programme on Saturday.

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A domiciliary account is not intended to save money but allows the owner to fund it with foreign currencies such as dollars, pounds or euros to perform foreign transactions.

However, with the naira’s constant struggle in the foreign exchange market, it is not uncommon for Nigerians to convert the naira to dollars at the parallel market and save in their dorm accounts, fuelling currency speculation as demands for dollars soar.

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