The Central Bank of Nigeria (CBN) has provided further guidance to Deposit Money Banks (DMBs) on the operational changes to the foreign exchange market announced on June 14, 2023.
Going by the latest guidance, holders of domiciliary accounts are now free to withdraw a maximum of 10,000 dollars per day while cash deposits into such accounts will no longer be restricted.
The apex bank in a statement on Sunday by its Director of Corporate Communication, Isa AbdulMumin, directed the DMBs as follows:
1. All visible and invisible transactions (medicals, school fees, BTA/PTA, airline, and other remittances) are eligible for the Investors’ and Exporters’ (I & E) window.
2. DMBs shall ensure expeditious processing of all eligible invisible transactions on behalf of their customers using the applicable rate at the I & E window.
3. Ordinary domiciliary account holders shall have unfettered and unrestricted access to funds in their accounts.
4. Domiciliary account holders are permitted to utilise cash deposits not exceeding USD$ 10,000 per day or its equivalent via telegraphic transfer.
5. DMBs shall provide returns to the CBN including the purpose for such transactions.
6. 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.
7. The CBN will prioritise orderly settlement of any committed FX forward transactions as they fall due in order to further boost market confidence.
8. The Bank will normalise its CRR maintenance processes and ensure equity in its implementation across the banking industry.
9. 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
ECONOMIC CONFIDENTIAL can recall that before now there was a restriction on how much cash Nigerians could withdraw from their domiciliary accounts.The restriction was also clouded with a lot of confusion and uncertainty as holders were not sure how much cash they could withdraw.
Withdrawal of previously deposited cash was restricted to 10,000 dollars per week sometimes or even monthly depending on the subsisting CBN policy.
The new policy direction has now clearly stated that holders can withdraw or transfer to the maximum of 10,000 dollars per day out of their domiciliary accounts.
The limit on wired transfers into a deposit account has now been completely removed.
Nigerians can now deposit an unlimited amount of cash into their domiciliary accounts.
Barely a week after ordering the suspension, arrest and detention of the former CBN governor, Godwin Emefiele, President Bola Ahmed Tinubu is advancing in his determination to undo all the Muhammadu Buhari and Emefiele policies which allegedly crippled the economy for the better part of the last eight years.
Nigerians have struggled to access their cash deposits into domiciliary accounts following the restrictions placed by Emefiele as CBN governor.
Before now, accessing cash deposits into domiciliary accounts was very limited as the CBN under Emefiele feared the dollarisation of the economy.
With this new development, Nigerians with domiciliary accounts can use their debit cards abroad without fear of restrictions.
The development according to some experts is also likely to improve liquidity in the forex market as this allows more people to deposit their forex in banks.
