CBN lifts restriction on domiciliary accounts, approves $10k withdrawals
The Central Bank of Nigeria (CBN) on Sunday, announced that the cash deposits into domiciliary accounts will no longer be restricted.
The apex bank while disclosing this is in guidance to Deposit Money Banks (DMBs) after a meeting with the bankers’ committee which includes allowing all visible and invisible transactions to be eligible for the Investors’ and Exporters’ window, granting unrestricted access to funds in ordinary domiciliary accounts, and permitting cash deposits not exceeding $10,000 per day or its equivalent via telegraphic transfer.
The CBN said that the policy changes was aimed to promote transparency, liquidity, and price discovery in the FX market in order to improve FX supply, discourage speculation, enhance customer confidence and ensure overall stability in the FX market.
“All visible and invisible transactions (medicals, school fees, BTA/PTA, airline, and other remittances) are eligible for the Investors’ and Exporters’ (I & E) window.
“DMBs shall ensure expeditious processing of all eligible invisible transactions on behalf of their customers using the applicable rate at the I & E window.
“Ordinary domiciliary account holders shall have unfettered and unrestricted access to funds in their accounts.
Domiciliary account holders are permitted to utilize cash deposits not exceeding USD$ 10,000 per day or its equivalent via telegraphic transfer. DMBs 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/FT laws and other relevant rules and regulations.
“The CBN will prioritize orderly settlement of any committed FX forward transactions as they fall due in order to further boost market confidence.”
The CBN, however, said it remains committed to ensuring a stable and efficient FX market that meets the needs of all legitimate users.
