The Central Bank of Nigeria (CBN) has announced new guidelines for the operation of domiciliary accounts, which allow holders to deposit and withdraw cash up to $10,000 per day without restrictions.
The apex bank made this statement in a press release that was released on Sunday after a special meeting of the Bankers’ Committee to discuss the implementation and effects of the policy changes on the banking industry.
The policy changes aim to promote transparency, liquidity, and price discovery in the FX market in order to improve FX supply, discourage speculation, enhance customer confidence and ensure overall stability in the FX market.
According to the Director, Corporate Communications, Dr. Isa Abdulmumin, the CBN provided further guidance to Deposit Money Banks (DMBs) as follows:
- All visible and invisible transactions (medicals, school fees, BTA/PTA, airline, and other remittances) are eligible for the Investors’ and Exporters’ (I & E) window.
- DMBs shall ensure expeditious processing of all eligible invisible transactions on behalf of their customers using the applicable rate at the I & E window.
- Ordinary domiciliary account holders shall have unfettered and unrestricted access to funds in their accounts.
- Domiciliary account holders are permitted to utilize cash deposits not exceeding USD$ 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 further boost market confidence.
- The Bank will normalize its CRR maintenance processes and ensure equity in its implementation across the banking industry.
The CBN assured the banking public that it remains committed to ensuring a stable and efficient FX market that meets the needs of all legitimate users.
This is a welcome development for many Nigerians who have been facing challenges in accessing foreign exchange for various purposes.
The new guidelines will also encourage more inflows of foreign currency into the country through electronic wires, which will help boost the economy and reduce pressure on the naira.
