The Central Bank of Nigeria (CBN) has issued updated guidelines to Deposit Money Banks (DMBs) in the country concerning the limit on the deposit of foreign currency notes in their vaults.
In a circular issued on Friday by the apex bank’s Director of Currency Operations, Mohammed Solaja, and posted on the bank’s website, the CBN specified that each bank was allowed a maximum daily deposit of $10 million in USD 100 and USD 50 notes.
According to the directive, these deposits can only be made at the CBN branches in Abuja and Lagos.
In the circular with Ref. No COD/DIR/INT/CIR/001/016, the apex bank directed that DMBs must notify it in writing of their intention to make such deposits at least three working days in advance.
In addition, the CBN further clarifies that for smaller denominations of $20 notes and below, the maximum daily deposit is $1 million.
The circular reads: “To deepen the foreign exchange market, boost liquidity, and attain convergence in the exchange rates of the parallel and official markets, the Central Bank of Nigeria (CBN) has approved that DMBs may deposit their excess foreign currency notes with Lagos and Abuja branches of the bank.
“The approval is a response to the increasing demand by DMBs to deposit their forex cash with CBN for onward credit to their off-shore accounts with correspondent banks”, the apex bank added.
