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The Lifting of Ban On Domicillary account: Is This a Somersault In Government’s Policy?

Some analysts and citizens are seeing the reverse in the monetary policy of the federal government as a somersault in policy. Same have criticised it from onset that it will exert a great pressure on Naira, the national currency. And they were proven right, since the inception of that policy, coupled with fallen price of crude oil, the Naira has depreciated drastically. The drastic fall in the value of Naira has even pushed the Senate to call for the resignation of the Central Bank governor Dr Emmnuel Emefiele.

The acting president of  Independent Bureau The Change Operators, Prof. Shaka Kano, said that since Nigeria is an import dependent country, and has an oil as the sole export, it needs dollar to carry out importations. So, the ban meant that people would have to go somewhere else to get their dollars, so that means that the value of dollar will automatically appreciate. That subsequently put pressure on the value of the national currency.

“Banning the Bureau The Change in participating in the activity will give rise to unemployment, and closure of some companies”, said Prof. Shaka Kano. He added that the Central Bank could just reduce the amount of dollars they could handle but not just shutting them out completely. He said that if CBN can check banks, why not extend the same measure or services to registered bureau the change.

In his response to the comment from Prof. Shaka Kano, the CBN director of monetary Policy Dr Moses Tule said that there is nothing like policy somersault but review of policy. “The fact that you are reviewing your policy does not amount to somersault”, Moses Tule said. He said that the banks made that policy and the CBN supported by saying that we are not going to accept deposits into domicillary account cash. We accepted that it was the right way to go, but we reviewed the policy holistically and have now come out to say that you can now go ahead. Having reviewed this over time, we have seen that there are some nuances here and there, and we feel that we can do it better. That is why we allowed it that you can put your cash in your domicillary accounts, withdraw and do some transactions on it. He said that  does not amount to policy somersault.

 

By Ike A. Offor  (IkeA.Offor@yahoo;com)

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