….limits daily transfers from domiciliary account to USD$10,000
Following the Central Bank of Nigeria (CBN) press statement of June 14, 2023, on new guidelines in the foreign exchange market, an extraordinary Bankers’ Committee meeting was held on Friday, June 16, 2023, to discuss its implementation and implications for the banking public.
A statement issued on Sunday by the apex bank’s Director, Corporate Communications Department, Dr. Is a Abdulmumin, indicated 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.
According to him, in line with deliberations at the meeting, provided further guidance to Deposit Money Banks (DMBs) that all visible and invisible transactions (medicals, school fees, BTA/PTA, airline and other remittances) are eligible for the Investors’ and Exporters’ (I & E) window; DMBs shall ensure expeditious processing of all eligible invisible transactions on behalf of their customers using the applicable rate at the I & E window; and that ordinary domiciliary account holders shall have unfettered and unrestricted access to funds in their accounts.
The apex bank further directed that domiciliary account holders are permitted to utilize cash deposits not exceeding USD$10,000 per day or its equivalent via telegraphic transfer and that DMBs shall provide returns to the CBN, including the “purpose” for such transactions.
In addition, the spokesman stated that 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/CFT laws and other relevant rules and regulations.
This is even as he maintained that the apex bank would prioritize orderly settlement of any committed FX forward transactions as they fall due in order to boost market confidence further and that it will normalize its CRR maintenance processes and ensure equity in its implementation across the banking industry.
