CBN Governor Godwin Emefiele has warned politicians looking to withdraw their naira in exchange for dollar speculations for election purposes insisting that it was illegal to do so.
Mr. Emefiele was responding to questions from journalists who pressed him on the likely impact of election spending on the value of the naira when compared to the dollars.
The Governor insisted that the apex bank was monitoring the situation and will continue to use its monetary policy (discretionary powers) tools to mop up excess liquidity in the system when it believes banks might be looking to facilitate election spending or speculate on forex.
Speaking specifically about the use of forex for election purposes he warned those who might be considering this to avoid doing so as it was illegal.
He also threatened that the CBN also has monitoring tools in this possession that it can use to track the suspicious movement of forex from one account to another.
Post no Debit (PnD) is a punitive tool used by the CBN to restrict the transfer of funds from any bank account in the country suspicious of being used illegally. When the restriction is placed, the account can not have any money transfered or withdrawn out of it for the duration it is under “PnD”.
Emefiele also warned potential collaborators that the CBN is a monster and will not hesitate to use the PND to stop customers from using their accounts for any bank transactions in the country.
CBN Examiners typically place suspicious accounts on PND during routine banking examinations. Banks are also heavily fined when they are found wanting. Some PND accounts are also lifted via court orders in favour of the owners of the accounts