CBN Will Never Tamper With Domiciliary Account Funds

The CBN Governor Godwin Emefiele said that said that the owners of domiciliary account should not be affraid about the their money that they had no plans to confistica and convert their money for any governmental use or reason.
The governor said this in Abuja during the end of 248th monetry policy committee (MPC) meeting that the insinuation that the government is planning to use the 20 billion dollars in the domiciliary account of individual idling away was unfounded. 
Emefiele said that has been no intention and there will be no intention when he was answering question on the issue. 
He said that people with domiciliary account will continue to have access to their fund, what we are trying to do is to make the market open for everyone and not create tightening situation that will further affect the economy
He described as wrong insinuations that the funds in the accounts were idle, explaining that they were liabilities in the balance sheets funding certain various assets on the side of their owners.
Mr. Emefiele, who spoke on some of the resolutions from the two-day meeting, said members resolved to raise the monetary policy rate, MPR, which is the approved rate banks would lend money to investors, by 100 basis points from 11 per cent to 12 per cent and cash reserve ratio, CRR by 250 basis points 20 per cent to 22.5 per cent.
The committee also agreed to retain liquidity ratio at 30 per cent, while narrowing the asymmetry corridor from +200 and -700 to 200 basis points and -500 basis points.
On the proposed streamlining of foreign exchange guidelines, the CBN governor apologised that the decision was being delayed, saying consultations were on-going with various interest groups on how to improve FX supply.
“As soon as we are able to achieve tangible success in this direction we will unfold this to Nigerians. We are hoping that with time the supply of foreign exchange would be improve,” he said.
Mr. Emefiele said during the previous meeting, the CBN had adopted an accommodating monetary policy introduced since July 2015 to address the growth concerns in the economy.
The policy of lowering both the CRR and MPR, he pointed out, was to effectively free more funds for the deposit money banks to have excess liquidity to lend to those who were able to submit verifiable investment proposals in the real sector of the economy.
He however expressed regrets that the funds have not impacted the market yet, because the banks were still processing some of the proposals submitted to them.
The CBN governor noted the impact of the delay in passing the 2016 budget on the economy, saying this worsened the difficult financial conditions of economic agents, as output continued to decline due to low investment arising from weak demand.
He identified factors that hampered economic growth during the period under review, namely the dismal performance in growth in credits to the private sector, lingering scarcity of refined petroleum products, seasonal factors and increased electricity tariffs.