CBN Could Make Changes in Forex, Domiciliary Accounts Operation in 2023, As MPC Members List Important Reforms
- There could be changes in how Nigerians use their domiciliary accounts and forex management in 2023
- The Central Bank of Nigeria Monetary Policy Committee members have suggested various reforms
- The changes suggested according to the MPC members will help save Naira from further depreciation
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The Central Bank of Nigeria could be making changes in how Nigerians operate domiciliary accounts in 2023.
Members of the Monetary Policy Committee (MPC), at the last meeting for 2022, called for bold reform of the foreign exchange market.
The members in a statement published by the CBN particularly sought for adjustments in the operation of Foreign Currency Domiciliary Accounts (FCDA) by Individuals.
Source: Facebook
What the MPC members are saying about Forex, domiciliary accounts
One of the members, Obadan Mike Idiahi in his personal statement argued that the accounts have tended to be grossly abused in recent years to the detriment of exchange rate stability.
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He added that exporting firms that maintain FCDAs must be effectively monitored.
His words:
“In addition to the monetary measures and development finance interventions being implemented, the CBN would need to seriously consider bold reforms of the foreign exchange market, in particular, the operation of Foreign Currency Domiciliary Accounts (FCDA) by individuals."
Another member, Festus Adenikinju said there is a need to address the pressures on the naira exchange rate by boosting the supply of foreign exchange in the economy.
He said:
“I am also of the opinion that the FX sold by the bank at the Investors and Exporters (I&E) windows should be for productive activities alone. The bank should review its policy of those who qualify to benefit from FX sold in the official market,” he said.
Also, Shonubi Folashodun, CBN’s deputy governor, operation, stated:
“On exchange rate, we must continue to juggle our options around demand management and supply enhancement policy mix, without forgetting that improving supply is the ultimate solution.
"Leveraging a model driven approach to price discovery and keeping an eye on subtle threats of dollarisation will be a good start to embracing the bold adjustment type of approach required at this time to effectively address the fundamental issues. This of course is not without regard for the macroeconomic implications but with a focus on the direction that ensures expected benefits surpasses the costs."
German embassy releases update on naira payment for visa
Meanwhile, in another report, the German embassy in Nigeria has announced changes in the use of naira to pay for its services.
The change is in consonance with the Central Bank of Nigeria naira notes redesigning policy.
The CBN redesigned 200, 500, and 1000 and expects Nigerians to return all old banknotes by the end of January 2023.
Source: Legit.ng
