The previous restrictions placed on domiciliary accounts of Nigerian deposit money bank (DMBs) customers have been relaxed as the apex bank issue further updates on foreign exchange (forex) transactions.
Following the Central Bank of Nigeria’s (CBN) new guidelines in the Foreign Exchange (FX) market recently released, the apex bank also announced further policy changes aimed to stabilise pressures in the economy.
According to the Director of Corporate Communications, Dr Isa AbdulMumin, these policy changes is to promote transparency, liquidity, and price discovery in the FX market.
AbdulMumin said this is to improve FX supply, discourage speculation, enhance customer confidence and ensure overall stability in the FX market. He said that in line with deliberations at an extraordinary Bankers’ Committee meeting held on June 16, the CBN provided further guidance to Deposit Money Banks (DMBs) as follows:
“All visible and invisible transactions (medicals, school fees, BTA/PTA, airline, and other remittances) are eligible for the Investors’ and Exporters’ (I & E) window. DMB ensures expeditious processing of all eligible hidden transactions on behalf of its clients using applicable tariffs at the I&E window.
“Ordinary account holders have unrestricted and unrestricted access to the funds in their account. Permanent account holders can make cash deposits up to $10,000 or equivalent per day by wire transfer. It’s allowed,” he said.
A CBN spokesperson said DMB has an obligation to provide benefits to CBN, including the “purpose” of such transactions. He added that as long as the DMB conducts proper Know Your Customer (KYC) due diligence, there will be no restrictions on cash deposits into the home account. “CBN will prioritize the orderly settlement of all FX forwards committed to maturity to further enhance market confidence,” he affirmed.
He added that Apex Bank will continue to engage with stakeholders and issue further guidance as it implements ongoing reforms.
