November 21, 2016

Federal Government To Start Jailing Dollar Hoarders

The Government has proposed an amendment to the Foreign-Exchange Act to enable imprisonment of anyone who holds foreign currencies, especially the dollar, for more than 30 days.

This is the latest measure the government and the Central Bank of Nigeria are considering to stem the volatility in the exchange rate and bolster the ailing naira, Bloomberg report.

In the new proposal, which were published on the website of the Nigerian Law Reform Commission last week, the CBN is seeking the power to control capital flows and stop people from taking forex out of the country.

According to the draft amendment of the Foreign Exchange Act, anybody holding dollars in cash for more than 30 days risk a jail term for as long as two years or a fine of 20 percent of the amount.

The move to stabilize the Naira is really getting serious.