By Akinsuroju Olubunmi
CBN sets New Guidelines for Forex deposits.
The Central Bank of Nigeria (CBN) has announced new guidelines for Deposit Money Banks (DMBs) concerning the deposit of foreign currency notes. This directive was outlined in a circular issued by Mohammed Solaja, the Director of Currency Operations, and published on the CBN’s website on Friday.
According to the new regulations, each bank is allowed to deposit a maximum of $10 million per day in USD 100 and USD 50 notes. These deposits can only be made at the CBN branches in Abuja and Lagos.
The circular, referenced COD/DIR/INT/CIR/001/016, requires DMBs to notify the CBN in writing at least three working days in advance of their intention to make such deposits. For smaller denominations, such as $20 notes and below, the daily deposit limit is set at $1 million.
“To deepen the foreign exchange market, boost liquidity, and achieve convergence in the exchange rates of the parallel and official markets, the CBN has approved that DMBs may deposit their excess foreign currency notes with Lagos and Abuja branches of the bank,” the CBN stated. This approval responds to the increasing demand by DMBs to deposit their forex cash with the CBN for onward credit to their offshore accounts with correspondent banks.
deposit, currency.
CBN sets New Guidelines for Forex deposits