ABUJA, Nigeria – The Central Bank of Nigeria, CBN, has directed all banks to allow customers unrestricted access to their domiciliary account funds.
As per the new guidelines, account holders can utilize cash deposits up to $10,000 per day or its equivalent through telegraphic transfer.
Isa Abdulmumin, Director of the Corporate Communications Department at the CBN, disclosed this information in a press statement on Saturday, June 17, 2023, titled: “CBN Issues Further Guidance on Operational Changes to Foreign Exchange Market.”
He said: “Following the Central Bank of Nigeria, CBN, press statement of June 14, 2023, on new guidelines in the foreign exchange market, an extraordinary Bankers’ Committee meeting was held on Friday, June 16, 2023, to discuss its implementation and implications for the banking public.”
The goal of these policy changes is to increase transparency, liquidity, and price discovery in the foreign exchange market. This is expected to enhance the supply of foreign exchange, discourage speculation, increase customer confidence, and ensure overall market stability.
Providing further instructions to Deposit Money Banks (DMBs), the statement detailed:
- All visible and invisible transactions, including medical fees, school fees, Basic Travel Allowance/Personal Travel Allowance, airline and other remittances are eligible for the Investors’ and Exporters’ (I & E) window.
- DMBs should ensure quick processing of all eligible invisible transactions using the applicable rate at the I & E window.
- Regular domiciliary account holders are permitted to use cash deposits not exceeding $10,000 per day or its equivalent via telegraphic transfer. Banks are also required to report these transactions to the CBN, including the purpose of such transactions.
- Cash deposits into domiciliary accounts will not be limited, as long as DMBs adhere to the proper Know Your Customer (KYC) requirements, due diligence procedures, and anti-money laundering/countering financing of terrorism laws and regulations.
The CBN also confirmed that it will prioritize the orderly settlement of any committed foreign exchange forward transactions, in a bid to boost market confidence further.
The central bank plans to continue engaging stakeholders and provide further guidance as it implements these reforms, the statement added.
