Money Bags Hurting Naira with $20bn in Domiciliary Accounts- CBN | Independent Newspapers Limited
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Money Bags Hurting Naira with $20bn in Domiciliary Accounts- CBN

Posted: Mar 4, 2016 at 5:03 am   /   by   /   comments (0)

The Central Bank of Nigeria (CBN) has revealed that the free fall of the naira is the handiwork of money bags in the country who have a whopping $20 billion stashed in different domiciliary accounts which they use to speculate against the currency.

The apex bank said the monies which are lying idle in various accounts are not been projected for any investment purposes by their owners but subtly been used to weaken the value of the naira and invariably increasing the value of the idle dollars.

Making the disclosure on behalf of the Federal Government at an interactive session the National Assembly joint committees on appropriation had with top government officials on the 2016 budget, the Deputy Governor of Central Bank (Financial System Surveillance), Dr Joseph Nnana, said some privileged Nigerians were the masterminds of the consistent slide in the value of the naira since, according to him, they have been embarking on dollar speculation to the detriment of the naira.

He, however, said the passage of the 2016 budget would put a stop to the unrestrained drop in naira value, as, according to him, the CBN would embark on aggressive liquidity mop-up to enable the naira regain confidence.

“The CBN will not sit down and watch the consistent fall of the naira. After the passage of the 2016 budget, naira will begin to bounce back. Those who speculate on dollars will have their fingers burnt”, he vowed.

In another development, the Minister of Finance, Kemi Adeosun, told the joint committee that the amount of money now in the Treasury Single Account (TSA) has risen to N2.9 trillion.

Adeosun explained that the money in the TSA is not meant to fund the budget contrary to general impression, stating that the money belongs to different agencies of government which she stressed have the right to access it.

She made the explanation against the backdrop of consistent requests from legislators that the Federal Government should use the lump sum in the TSA to fund the 2016 budget amid liquidity problem the government has been facing.

Adeosun said each ministry and department of government had their monies transferred into the TSA and hence should have access to it any time they have the need.