The Central Bank of Nigeria (CBN) has announced that there will no longer be restrictions on cash deposits into domiciliary accounts, News About Nigeria reports.
This decision comes after a meeting between the CBN and the bankers’ committee on Sunday, where guidance was provided to Deposit Money Banks (DMBs).
The new guidance includes several key changes.
Firstly, all visible and invisible transactions will now be eligible for the Investors’ and Exporters’ window.
This means that activities such as medical expenses, school fees, business travel allowances, and remittances will have access to this window.
Furthermore, individuals with ordinary domiciliary accounts will have unrestricted access to their funds.
They will be able to utilize cash deposits up to $10,000 per day or its equivalent through telegraphic transfer.
The CBN has implemented these policy changes with the aim of promoting transparency, liquidity, and price discovery in the foreign exchange (FX) market.
The primary objective is to enhance the availability of foreign exchange, discourage risky speculations, boost customer trust, and maintain a stable and balanced foreign exchange market.
Deposit Money Banks (DMBs) are now responsible for expeditiously processing all eligible invisible transactions on behalf of their customers.
They must use the applicable exchange rate at the Investors’ and Exporters’ window for these transactions. Additionally, DMBs are required to provide returns to the CBN, including the purpose of such transactions.
However, it is important for DMBs to conduct proper Know Your Customer (KYC) procedures and due diligence.
They must also comply with anti-money laundering and counter-terrorism financing laws, as well as other relevant regulations.
The CBN has emphasized its commitment to ensuring a stable and efficient FX market that caters to the needs of all legitimate users.
As part of this commitment, the bank will prioritize the orderly settlement of any committed FX forward transactions to further boost market confidence.
