The Central Bank of Nigeria (CBN) has declared that cash deposits into domiciliary accounts will not be restricted, ensuring customers have full access to their funds.
This announcement came after a meeting with the bankers’ committee on Sunday, where the CBN aimed to provide additional guidance to deposit money banks (DMBs) regarding recent operational changes in the foreign exchange market.
The meeting also discussed the implementation and implications of policy changes for the banking public.
The directive issued by the CBN effectively nullifies the transaction limit banks imposed on domiciliary accounts in 2021 to comply with regulatory instructions from the central bank.
This move comes in the wake of significant events in Nigeria’s foreign exchange market, following the implementation of reforms aimed at repositioning the country’s economy.
On June 14, the CBN announced the unification of all segments of Nigeria’s foreign exchange market and the floating of the local currency.
According to the CBN, this policy collapse brings together all foreign exchange windows into the investors and exporters (I&E) window.
The central bank’s latest statement emphasizes its commitment to promoting transparency, liquidity, and price discovery in the foreign exchange market.
These policy changes are aimed at improving foreign exchange supply and discouraging speculation, thereby enhancing customer confidence and ensuring overall stability in the market.
The CBN reiterated that it would provide further guidance to authorized dealers and the general public in due course.
“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 statement read in part.
“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 $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 (know your customer), due diligence, and adhering to the spirit and letter of extant anti-money laundering/ combating the financing of terrorism laws and other relevant rules and regulations.
“The CBN will prioritize orderly settlement of any committed FX forward transactions as they fall due to further boost market confidence.”
The bank added that the cash reserve ratio (CRR) would maintain its processes while ensuring equity in its implementation across the banking industry.
The CBN also assured the banking public that it remains committed to “ensuring a stable and efficient FX market that meets the needs of all legitimate users”.
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