CBN Lifts Restrictions On Domiciliary Accounts

The Central Bank of Nigeria (CBN) has issued further guidance to Deposit Money Banks (DMBs) regarding operational changes to the foreign exchange market.

Consequently, CBN says cash deposits into domiciliary accounts will not be restricted, and customers “shall have unfettered and unrestricted access to funds in their accounts”.

These were some of the deliberations reached at a meeting with the bankers’ committee on Sunday.

The meeting was meant to provide further guidance to deposit money banks (DMBs) on the recent operational changes to the foreign exchange market and to discuss the implementation and implications of the policy changes for the banking public.

According to the CBN, 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.

Some of the key points of the guidance include, 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.
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Ordinary domiciliary account holders shall have unfettered and unrestricted access to funds in their accounts and that domiciliary account holders are permitted to utilize cash deposits not exceeding USD$ 10,000 per day or its equivalent via telegraphic transfer among others.

The CBN had earlier announced dollar rate unification policy aimed at stopping the different rates obtainable before now. The apex bank is likely to introduce more changes in the coming months.