In an apparent move to check the trending dollarisation of the Nigerian economy and cut down huge dollar liquidity in the system, banks are now directing their customers to keep to a maximum of $10,000 balance in their domiciliary accounts.

A bank customer told BusinessDay on Monday that following the directive of his bank, last week, he has withdrawn $2,000 which was the excess on the $10,000 he had in his account before that directive came.

The customer said he received the following text from his bank- “…Dear customer, be advised that you cannot keep more than $10,000 balance in your domiciliary account, otherwise, the excess would be subjected to 10% charge weekly.”

BusinessDay could not get a reaction from the banks that sent out those directives, but a bank top staff confirmed such development in other banks, but said his institution was yet to receive any advice on the matter.

Ibrahim Mu’azu, CBN director, corporate communications, told BusinessDay that he was not aware of such directive, but that whatever it is would be clarified at the MPC meeting. “I am not aware that the CBN issued such directive, maybe the banks are looking for revenue or running away from something. Whatever, it will be clearer probably after tomorrow’s meeting,” Mu’azu stated.

There are, however, indications that CBN governor, Godwin Emefiele, may have gotten President Goodluck Jonathan’s backing to implement some tough policies, as long as they are useful in saving the naira.

Regular and huge dollar spending, including for shopping, gifts, school fees, rent, which are now demanded in dollars, has been a serious concern for the CBN, due to the huge demand pressure it exerts in the FX market and then on the naira.

Last week Tuesday, the CBN held meetings with banks on the unhealthy dollarisation of the economy. It was learnt that the CBN was disappointed that banks were not implementing its directives to the letter, but were interpreting the circulars to suit their own purpose.

The issue and the attendant impact on the naira, especially unstable exchange rate at the parallel foreign exchange market, is also expected to dominate discussions at the CBN’s two-day Monetary Policy Committee (MPC) meeting which began on Monday.

But at the last meeting in March, Emefiele raised concerns over the wide divergence between the interbank and the bureau-de-change exchange rates, which provides an avenue for arbitrage and speculative activities in the market.

He particularly noted with concern the phenomenon of currency substitution and partial dollarisation in the economy, a development which, he said, may have significantly fuelled the high demand for foreign exchange.

http://businessdayonline.com/2015/05/dollarisation-banks-peg-domiciliary-account-balance-at-10000/#.VVuPmflViko

lalasticlala, Ishilove

As long as GTB does not charge mii on my $4 balance wiv them, e no qoncern mii..

Buh seriously FG needs to curb dis trend of paying for goods nd services in dollars else abana go soon dey demand their pay in dollars too....

OK..We suppose don implement this tey tey...na to move my money comot sharply..

we don hear

If you ask them now they will say they are trying to reduce corruption..

Not good enough...

[size=20pt][url]nairation.com[/url][/size]

what ever so mah pocket no dey charge me, am lez concern

maybe this is good for the economy

I have only $3.4. on my domiciliary account. hope I won't also be charged. Hehe heehehheheh. Wtf

To Whom It May Concern!!!!!!
You guys should take note cos as my condition dey now, dis news no concern me

I have like $10 in diamond bank..

Can't wait for $1=N1

Its well

Speechless though!!!

Pls does GTB have any subsidiary bank in the US??

The best news of the day. Dollarisation of our economy is becoming a big problem. This thing will make the Naira lose value faster than we can imagine, because people hoard dollars, or go straight to Berau de Change to dollarise any money they get. Black market forex.
You cant believe that some estate owners, and even local landlords in Lagos collect rent in dollars. Even some primary and secondary schools.
I pray the eight assembly enacts laws to stop all these attitudes weakening the economy.

Good Development. I hope it saves our naira.

wow!
My $100,000.....straight to First Bank 2moro.

whatever....

So where do i keep all my future billion dollars?

So what do we do with the overshoot? #Just talk to them...

mr prez elect 1naira to 1dollar.... we never forget oh!

In a "Mental Hospital" a journalist asks the Doctor: How do u determine whether to admit a mental patient or not?

Dr: "Well, we'd fill a bathtub with water and then give the patient;
(a). a teaspoon,
(B-). a glass,
(c). a bucket,
and ask them to empty the bathtub."

Journalist: "Oh, obviously a normal person would use the bucket because its bigger."

Dr: "No, a normal person would pull the drain plug! Please go to bed No.39. We will start further investigations on you!"
You also thought of the bucket, didn't you? Please go to bed No. 40 !

tobtap:
OK..We suppose don implement this tey tey...na to move my money comot sharply..

Hehe. Do you really have money?

Nice move cbn

bed time

I'll tell my mother who is selling food stuff in the village to check whether she have more than $10,000 in her Akawo account. Just to let her know the new development.

What will happen to people who have signed contracts to be paid in dollars? For example, a foreign company performing some services for a Nigerian Client here in Nigeria and on the Contract signed in 2012, it was agreed that the Client will pay the monthly fee in dollars.

Will this new policy affect the existing contract?

Also, will this policy affect Nigerian staff that are being paid their monthly salary in dollars?

Buhari na u be hope oh,but wait he's turning fed ministries to department wont he lay people off,and later employ them and start shouting he created job,he beta find anoda solution

Adesiji77:


http://businessdayonline.com/2015/05/dollarisation-banks-peg-domiciliary-account-balance-at-10000/#.VVuPmflViko

lalasticlala, Ishilove

What sort of ridiculous policy is this. So now I have to get a strong room to keep my usd thats very funny.. how is this going to encourage foreign investment..

I think we have very foolish folks up there who dont even know what they should be doing...

BE811APP:
I have like $10 in diamond bank..

Can't wait for $1=N1

Its well

Then you will be left with N10

9ja , yeye they smell. They will still scrap it.

This is a nonsensical policy.

This so called dollarisation is probably not worth more than $500m a year. Whats that compared to oil receipts in billions of dollars.

There are better ways of protecting the naira.

We hoping Buhari will give CBN Governor a strict directives. but, can he do anything that will not please Americans and the entire Europeans as they are joyfully following him as if he is going to implement GAY marriage in Nigeria.