Holders of domiciliary accounts now have unfettered access to operation such accounts, following the Central Bank of Nigeria (CBN)’s decision to lift restrictions.
As a result of this action taken at an extraordinary Bankers’ Committee meeting on Friday, deposits into and withdrawals from the foreign currency accounts are open.
A domiciliary account holder can make a daily transfer not exceeding $10,000 or its equivalent.
The banks are to provide returns to the CBN, including the “purpose” for such transactions.
“Ordinary domiciliary account holders shall have unfettered and unrestricted access to funds in their accounts. Domiciliary account holders are permitted to utilise cash deposits not exceeding USD$ 10,000 per day or its equivalent via telegraphic transfer,” the CBN said in a statement by its Director of Corporate Communications, Dr Isa Abdulmumin.
The statement explained that: “These policy changes aim to promote transparency, liquidity and price discovery in the Foreign Exchange (FX) market in order to improve FX supply, discourage speculation, enhance customer confidence and ensure overall stability in the FX market.”
Other changes introduced in the Forex market by the CBN are that “cash deposits into domiciliary accounts will not be restricted, subject to banks’ conducting proper KYC, due diligence and adhering to the spirit and letter of
extant AML/CFT laws and other relevant rules and regulations”.
The CBN has also decided that it “will prioritise orderly settlement of any committed FX forward transactions as they fall due in order to boost market confidence further.”
On foreign exchange for visible and invisible transactions (medicals, school fees, BTA/PTA, airline and other remittances) , the CBN decided that they ”will now be eligible for the Investors’ and Exporters’ (I & E) window.
As a result of this, banks have been told to “ensure expeditious processing of all eligible invisible transactions on behalf of their customers using the applicable rate at the I & E window”.
The CBN also resolved to “normalise its Cash Reserve Ratio (CRR) maintenance processes and ensure equity in its implementation across the banking industry. ”
The apex bank added that it would issue further guidance as it implements the ongoing reforms in collaboration with stakeholders.
