CBN Removes Cash Deposit Restriction on Domiciliary Accounts, Permits Daily Withdrawals of $10,000
Central Bank of Nigeria (CBN) provides guidance to Deposit Money Banks (DMBs) on operational changes in the foreign exchange market, aimed at promoting transparency, liquidity, and stability.
The policy changes seek to improve FX supply, discourage speculation, enhance customer confidence, and ensure overall market stability.
The CBN issued a press statement on June 18, 2023, following an extraordinary Bankers’ Committee meeting to discuss the implementation and implications of the new policies.
In the statement, the CBN highlights key points of the guidance:
- “All visible and invisible transactions, including medicals, school fees, BTA/PTA, airline, and other remittances, are eligible for the Investors’ and Exporters’ (I & E) window.”
- “DMBs must process eligible invisible transactions promptly on behalf of their customers using the applicable rate at the I & E window.”
- “Ordinary domiciliary account holders will have unrestricted access to funds in their accounts.”
- “Domiciliary account holders can utilize cash deposits up to USD$ 10,000 per day or its equivalent via telegraphic transfer.”
- “DMBs must provide returns to the CBN, including the purpose of such transactions.”
- “Cash deposits into domiciliary accounts will not be restricted, provided DMBs follow proper KYC, due diligence, and adhere to AML/FT laws and other relevant regulations.”
- “The CBN will prioritize orderly settlement of committed FX forward transactions to boost market confidence.”
- “The Bank will normalize its CRR maintenance processes and ensure equitable implementation across the banking industry.”
The CBN reassures the public that it remains committed to maintaining a stable and efficient FX market that serves the needs of all legitimate users.
