CBN new directive for DMBs on Foreign Currency Deposits.
- Nigeria foreign currency deposit guidelines
Abuja, Nigeria — The Central Bank of Nigeria (CBN) has announced new guidelines for Deposit Money Banks (DMBs) concerning the deposit of foreign currency notes across the country. This directive was detailed in a circular issued by the Director of Currency Operations, Mohammed Solaja, and published on the bank’s website on Friday, June 27.
In the new directive, the apex bank stipulated that each commercial bank is allowed a maximum daily deposit of $10 million in $100 and $50 notes. These deposits are restricted to CBN branches in Abuja and Lagos.
According to the circular with reference number COD/DIR/INT/CIR/001/016, the apex bank directed that DMBs must notify the CBN in writing of their intention to make such deposits at least three working days in advance.
Furthermore, for smaller denominations of $20 notes and below, the CBN has set a maximum daily deposit limit of $1 million.
“To deepen the foreign exchange market, boost liquidity, and attain convergence in the exchange rates of the parallel and official markets, the Central Bank of Nigeria (CBN) has approved that DMBs may deposit their excess foreign currency notes with Lagos and Abuja branches of the bank,” the circular stated.
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The approval is a response to the increasing demand by DMBs to deposit their forex cash with CBN for onward credit to their off-shore accounts with correspondent banks”, the apex bank said.
This new directive aims to streamline the handling of foreign currency notes by DMBs and ensure better management of foreign exchange within the country.
For further details, DMBs and other stakeholders are advised to consult the circular available on the CBN’s official website.
