The Central Bank of Nigeria (CBN) has lifted the restriction it placed on cash deposits into domiciliary accounts while allowing account holders to make daily withdrawals of up to $10,000.
This was contained in a press statement issued by the CBN on Sunday after an extraordinary Bankers’ Committee meeting.
According to the apex bank, the policy changes “aim to promote transparency, liquidity, and price discovery in the FX market in order to improve FX supply, discourage speculation, enhance customer confidence and ensure overall stability in the FX market.”
Key highlights:
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All visible and invisible transactions (medicals, school fees, BTA/PTA, airline, and other remittances) are eligible for the Investors’ and Exporters’ (I & E) window.
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DMBs shall ensure expeditious processing of all eligible invisible transactions on behalf of their customers using the applicable rate at the I & E window.
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Ordinary domiciliary account holders shall have unfettered and unrestricted access to funds in their accounts.
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Domiciliary account holders are permitted to utilize cash deposits not exceeding USD$ 10,000 per day or its equivalent via telegraphic transfer.
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DMBs shall provide returns to the CBN including the purpose for such transactions.
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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/FT laws and other relevant rules and regulations.
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The CBN will prioritize orderly settlement of any committed FX forward transactions as they fall due in order to further boost market confidence.
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The Bank will normalize its CRR maintenance processes and ensure equity in its implementation across the banking industry.
This new directive provides further guidance to banks on the operational changes to the foreign exchange market announced by the CBN last week.
The changes announced by CBN include the re-introduction of the “willing buyer, willing seller” model at the I&E window, which literally meant the floating of the naira to allow market forces determine the price. The policy changes announced by the CBN include:
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Abolishment of segmentation. All segments are now collapsed into the Investors and Exporters (l&E) window. Applications for medicals, school fees, BTAPTA, and SMEs would continue to be processed through deposit money banks.
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Re-introduction of the “Willing Buyer, Willing Seller” model at the l&E Window. Operations in this window shall be guided by the extant circular on the establishment of the window, dated 21 April 2017 and referenced FMD/DIR/CIR/GEN/O8/007. All eligible transactions are permitted to access foreign exchange at this window
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Cessation of RT200 Rebate Scheme and the Naira4Dollar Remittance Scheme, with effect from 30 June 2023.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
