The Central Bank
of Nigeria on Tuesday raised concerns over the increasing use of
foreign
currencies as a medium of exchange in the country and warned that persons
caught in the illegal act risked a six-month jail term upon conviction.
The central bank
said in a statement that some individuals and corporate bodies had been using
foreign currencies, especially the United States dollar, to price some of their
products and services, and were also using same as a medium of exchange.
The development,
the bank said, was against the provisions of the CBN Act, 2007, and asked
members of the public to report anyone caught transaction business in the
country in foreign currencies to it or the Economic and Financial Crimes
Commission.
The statement
issued by the Director, Corporate Communications, CBN, Mr. Ibrahim Muazu, read,
“The attention of the bank has been drawn to the increasing use of foreign
currencies in the domestic economy as a medium of payment for goods and
services by individuals and corporates.
“It has also been
observed that some institutions price their goods and services in foreign
currencies and demand payment in foreign currencies rather than the domestic
currency (the naira), which is the legal tender in Nigeria.
“For the avoidance
of doubt, the attention of the general public is hereby drawn to the provision
of the CBN Act of 2007, which states inter-alia that ‘the currency notes issued
by the bank shall be legal tender in Nigeria…for the payment of any amount.’”
It added,
“Furthermore, the Act stipulates that any person(s) who contravenes this provision
is guilty of an offence and shall be liable on conviction to a prescribed fine
or six months imprisonment.
“This prohibition,
however, is without prejudice to foreigners, visitors and tourists who are
encouraged to continue to use their cards for payments or exchange their
foreign currencies for the local currency at any of the authorised dealers’
outposts.
“The general
public is hereby advised to report any contravention of the provision of this
Act to the Economic and Financial Crimes Commission and the CBN for appropriate
action.”
Meanwhile, the
naira fell to 204 against the dollar at the parallel market on Tuesday as
politicians were said to be engaged in massive purchase of the greenback ahead
of the governorship and state Houses of Assembly elections on Saturday.
The naira had
risen to 190 against the United States currency on Sunday following the
peaceful conduct of the presidential election.
Foreign exchange
dealers, who spoke with our correspondent on the condition of anonymity, said
the naira tumbled on Tuesday after politicians mopped up dollars on the streets
of Lagos, Abuja, Kano and Port Harcourt.
“The naira is
falling because politicians are buying dollars massively on the street market
to fund the campaigns ahead of the governorship and states’ Houses of Assembly
elections on Saturday,” one of the dealers said.
Wake up call from CBN: Use dollars for local transactions, go to jail
Reviewed by Unknown
on
Wednesday, April 08, 2015
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