CBN Removes Restriction on Dom Accounts, Releases Updates
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. DMBs shall ensure expeditious processing of all eligible invisible transactions on behalf of their customers using the applicable rate at the I & E window.
“Ordinary domiciliary account holders shall have unfettered and unrestricted access to funds in their accounts. Domiciliary account holders are permitted to utilize cash deposits not exceeding 10,000 dollars per day or its equivalent via telegraphic transfer,” he said.
The CBN spokesman said that the DMBs are mandated to provide returns to the CBN, including the “purpose” for such transactions. He added that cash deposits into domiciliary accounts would not be restricted, subject to DMBs conducting proper Know Your Customer (KYC), due diligence.
“The CBN will prioritise the orderly settlement of any committed FX forward transactions as they fall due in order to boost market confidence further. The Bank will normalise its Cash Reserve Ratio (CRR) maintenance processes and ensure equity in its implementation across the banking industry,” he assured.
He added that the apex bank would continue to engage stakeholders and issue further guidance as it implements the ongoing reforms. #CBN Removes Restriction on Dom Accounts, Releases Updates Naira Steadies as Banks Issue Update on FX Purchase
