Holders of domiciliary accounts are now allowed to use cash deposits up to $10,000 per day, according to the Central Bank of Nigeria, which eliminated the previous limitations on cash deposits.
The apex bank made this statement in a press release that was released on Sunday and that provided Deposit Money Banks (DMBs) with additional guidance on the operational adjustments to the foreign exchange market that were announced on June 14, 2023.
The announcement came after a special meeting of the Bankers’ Committee to discuss the implementation and effects of the policy changes on the banking industry.
According to the CBN, the policy changes aim to promote transparency, liquidity, and price discovery in the FX market in order to improve FX supply, discourage speculation, enhance customer confidence and ensure overall stability in the FX market.
According to the Director, Corporate Communications, Dr. Isa Abdulmumin, the CBN, in line with deliberations at the meeting, provided further guidance to Deposit Money Banks (DMBs).
He said all visible and invisible transactions (medicals, school fees, BTA/PTA, airline
and other remittances) are eligible for the Investors’ and Exporters’ (I & E) window.
The CBN added that all DMBs would ensure expeditious processing of all eligible invisible transactions on behalf of their customers using the applicable rate at the I & E window.
It added that ordinary domiciliary account holders would have unfettered and unrestricted access to funds in their accounts.
The statement added, “Domiciliary account holders are permitted to utilize cash deposits not exceeding U$10,000 per day or its equivalent via telegraphic transfer. DMBs shall provide returns to the CBN, including the “purpose” for such transactions.
“Cash deposits into domiciliary accounts will not be restricted, subject to DMBs conducting proper KYC, due diligence and adhering to the spirit and letter of extant AML/CFT laws and other relevant rules and regulations.
“The CBN will prioritize orderly settlement of any committed FX forward transactions as they fall due in order to boost market confidence further.
“The Bank will normalize its CRR maintenance processes and ensure equity in its implementation across the banking industry.”
The CBN said it will continue to engage stakeholders and issue further guidance as it implements the ongoing reforms.
Discussion about this post