Report: Nigerian Central Bank Sued for Dollarizing Economy

In a lawsuit filed by a Nigerian human rights activist, the country’s central bank is accused of failing to stop the dollarization of the economy. According to the activist, the central bank’s unwillingness to stop economic agents from demanding U.S. dollars for domestic transactions has “resulted in the constant devaluation, depreciation and unending plunge of the naira.”

Nigeria’s Foreign Exchange Woes

A Nigerian lawyer and human activist, Femi Falana, is suing the Central Bank of Nigeria (CBN) for allegedly dollarizing the economy. In his suit filed with a Lagos High Court, Falana also alleged that the CBN’s failure to perform its statutory obligations had “resulted in the constant devaluation, depreciation and unending plunge of the naira.”

As has been reported by Bitcoin.com News in the past few months, the Nigerian currency has been losing ground against major currencies. Many Nigerian economic commentators attribute the naira’s constant depreciation to the ongoing U.S. dollar shortage.

According to a report published by Arise TV, the Nigerian human rights activist believes that the High Court can help compel the CBN to enforce relevant provisions of the law.

“Consequently, we urge your lordship to compel the defendant to put an end to the use of [the] dollar as legal tender by enforcing policies and sanctions that will stop the illegal use of dollars as legal tender in Nigeria,” Falana argued.

In addition, Falana, who is a senior advocate of Nigeria (SAN), said the central bank should be forced to declare the naira and kobo as the West African country’s only legal tender. The court should also force the CBN to prosecute anyone who refuses to accept the naira as a means of payment, the lawyer added.

Meanwhile, in an affidavit submitted to support his lawsuit against the central bank, Falana claimed that the apex bank has not stopped schools and landlords from demanding U.S. dollars. The lawyer also accused the CBN of failing to eliminate the multiple exchange rate regime and replace it with a sustainably managed rate within a period of 12 months as promised.

Register your email here to get a weekly update on African news sent to your inbox:

What are your thoughts on this story? Let us know what you think in the comments section below.

source https://news.bitcoin.com/report-nigerian-central-bank-sued-for-dollarizing-economy/

Komentar

Postingan populer dari blog ini

Spanish Treasury Secretary Says Cryptocurrencies Carry a ‘Risk of Default’, Repeats Bank of Spain’s Lack of Regulation Rhetoric

The government of Spain continues to harden its stance against widely adopting cryptocurrencies. The Spanish Secretary of State for the Economy recently expressed her concerns on risks that she thinks cryptos possess for the national economy. Secretary Doesn’t Like Bitcoin as It Cannot Be ‘Supervised or Sanctioned’ During the Online Fintech Summit 2021 , Ana de la Cueva said that cryptocurrencies such as bitcoin ( BTC ) carry “a risk of default, given that the user does not have the protection offered by traditional payment systems against a default by the counterparty.” In fact, the Secretary blasted off on the lack of a “centralized guarantee system” in bitcoin. Interestingly, at the beginning of her speech, De La Cueva mentioned that the cryptocurrency’s technology is based on blockchain. However, she later pointed out that there is no standard “clarity” on the nature of bitcoin. The Secretary repeated the same rhetoric of Spanish state entities on crypto assets, saying that th...

Baca selengkapnya

Barry Silbert Resigns as Chairman of Grayscale Investments

Digital Currency Group (DCG) founder Barry Silbert has resigned from his position as the chairman of Grayscale Investments. Current DCG chief financial officer Mark Shifke succeeds Silbert and is joined by Edward McGee and Matthew Kummell as members of the new look board. Preparing for Grayscale’s Next Chapter Barry Silbert, the founder and CEO of Digital Currency Group, has resigned from his position as chairman of the digital asset management company Grayscale and will be replaced by Mark Shifke. According to the company’s filing with the Securities and Exchange Commission (SEC), starting Jan. 1, 2024, Grayscale’s board will be composed of Mark Shifke, Matthew Kummell, and Edward McGee. Current Grayscale Investments CEO Michael Sonnenshein is also a board member, while Mark Murphy, the president of Digital Currency Group (DCG), departs alongside Silbert. Commenting on the changes to the board, an unidentified Grayscale spokeswoman reportedly said: “Grayscale and our investors ...

Baca selengkapnya

48 US Lawmakers Ask SEC Chair Gensler to Clarify Whether ETH Is a Security — Warn of ‘Negative Repercussions’

Forty-eight U.S. lawmakers have sent a letter to U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler asking him to clarify whether ether is a security. “The negative repercussions of the SEC implicitly or directly classifying ETH as a digital asset security will cascade throughout the digital asset marketplace both in the short and long […] source https://news.bitcoin.com/48-us-lawmakers-ask-sec-chair-gensler-to-clarify-whether-eth-is-a-security-warn-of-negative-repercussions/

Baca selengkapnya

Crypto Account Manager

Cari Blog Ini