. Allows $10,000 daily withdrawals
The Central Bank of Nigeria (CBN), yesterday, announced the removal of cash deposit limitations on domiciliary accounts, in continuation of its on-going reforms in the foreign exchange (FX) market.
As a result, account holders can now deposit freely and withdraw up to $10,000 per day.
Hitherto, bank customers faced limitations on the amount of cash they could deposit and withdraw from their individual domiciliary accounts, thereby hindering international transactions.
The lifting of restrictions was contained in a statement titled: “CBN issues further guidance on operational changes to foreign exchange market,” which was issued after deliberating at an extraordinary Bankers’ Committee meeting.
The statement reads in part: “Ordinary domiciliary account holders shall have unfettered and unrestricted access to funds in their accounts. Domiciliary account holders are permitted to utilise cash deposits not exceeding $ 10,000 per day or its equivalent via telegraphic transfer.
“DMBs (Deposit Money Banks) shall provide returns to the CBN, including the ‘purpose’ for such transactions.
“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.
“DMBs shall ensure expeditious processing of all eligible invisible transactions on behalf of their customers using the applicable rate at the I & E window. DMBs shall provide returns to the CBN including the purpose for such transactions.”
Ordinary domiciliary account holders shall have unfettered and unrestricted access to funds in their accounts.
According to the statement signed by the Director, Banking Supervision Department, CBN, Haruna Mustafa, the meeting was held to discuss the implementation and implications of the policy changes for the banking public.
The bank said it will prioritize orderly settlement of any committed FX forward transactions to further boost market confidence.
Earlier on Friday, the CBN had on its Twitter page reiterated that the 43 non-eligible items remain banned despite the unification of the FX markets, meaning importers will have to source the funds from the parallel market.
In June 2015, the apex ban restricted access to FX for the importation of some items including rice, cement, margarine, palm oil products/vegetable oils, tomato paste, meat and processed meat products, vegetables and processed vegetable products, and poultry, and a host of others, to encourage local production.
