CBN lifts restrictions on domiciliary accounts

The Central Bank of Nigeria (CBN) has lifted the restrictions placed on domiciliary accounts.

The CBN made this known via a statement issued on Sunday, June 28, by the Director, Corporate Communications, Dr Isa AbdulMumin.

AbdulMumin stated that account holders can now unrestricted access to funds in their accounts and make up to $10,000 withdrawals daily.

He noted that the CBN aims to promote transparency, liquidity and price discovery in the Foreign Exchange market, adding that this is in order 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.

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“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 10,000 dollars per day or its equivalent via telegraphic transfer.”

The CBN spokesman noted that the DMBs are mandated to provide returns to the CBN, including the purpose for such transactions.

AbdulMumin added that cash deposits into domiciliary accounts would not be restricted, subject to DMBs conducting proper Know Your Customer (KYC) and 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.

The CBN official added that the apex bank would continue to engage stakeholders and issue further guidance as it implements the ongoing reforms.

The Star