Cash deposits into domiciliary accounts will no longer be restricted, according to the Central Bank of Nigeria (CBN).
The apex bank made the statement after discussing guidance for Deposit Money Banks (DMBs) during a meeting with the bankers' committee on Sunday, June 18.
The guidelines say that the Investors' and Exporters' window is open to all visible and invisible transactions, that ordinary domiciliary account funds can be accessed without restriction, and that cash deposits of up to $10,000 per day or the equivalent can be sent via telegraphic transfer.
The CBN claims that the policy will encourage price discovery, liquidity, transparency, and an increase in FX supply in order to boost customer confidence, reduce speculation, and maintain market stability.
The Investors' and Exporters' (I & E) window is open to "all visible and invisible transactions" (medicals, school fees, BTA/PTA, airline, and other remittances).
"DMBs shall use the applicable rate at the I & E window to expedite the processing of all eligible invisible transactions on behalf of their customers."
"The holders of ordinary domiciliary accounts shall have unrestricted access to their funds."
Domiciliary account holders are allowed to use telegraphic transfer to make cash deposits of up to $10,000 per day or an equivalent amount. Returns to the CBN from DMBs must include the purpose of the transactions.
“Subject to DMBs carrying out proper KYC, performing due diligence, and adhering to the spirit and letter of existing AML/FT laws and other relevant rules and regulations, cash deposits into domiciliary accounts will not be restricted.
"To further boost market confidence, the CBN will prioritize orderly settlement of any committed FX forward transactions as they come due."
The Central Bank of Nigeria (CBN) also stated that it will continue to work toward maintaining a reliable and effective foreign exchange market that meets the requirements of all legal users.
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