CBN permits domiciliary account holders to utilise deposits not exceeding $10,000

THE Central Bank of Nigeria (CBN) has now permitted domiciliary account holders to utilise cash deposits not exceeding $10,000 per day or its equivalent telegraphic transfer.

The CBN said cash deposits into domiciliary accounts would, consequently, not be restricted and customers “shall have unfettered and unrestricted access to funds in their accounts.”

The apex bank confirmed this in a statement it issued on Sunday, June I8, after a meeting with the Bankers’ Committee.

The meeting was meant to provide further guidance to commercial banks on the recent operational changes to the foreign exchange market, and to discuss the implementation and implications of the changes for the banking public.

Analysts believe this development is intended to allow the domiciliary account to fund the banks that will, in turn, fund the foreign exchange market.

“This development will open up doors for huge remittances in the domiciliary accounts and other forms of remittances, which could rise to $20 billion,” an economist, Kalu Aja said.



    Aja stressed that the unification of foreign exchange rates would help to determine the actual value of Nigeria’s currency and attract more investments inflow into Nigeria’s foreign exchange market.

    The apex bank itself explained it designed the policy reforms to promote transparency, liquidity, and price discovery in the foreign exchange (forex) market in order to improve forex supply, discourage speculation, enhance customer confidence, and ensure overall stability in the forex market.

    Some of the key points of the guidance are as follows:
    (a) All visible and invisible transactions (medicals, school fees, basic travel allowance/personal travel allowance, airline, and other remittances) are eligible for the Investors’ and Exporters’ (I & E) window.
    (b) Ordinary domiciliary account holders shall have unfettered and unrestricted access to funds in their accounts.
    (c) Domiciliary account holders are permitted to utilize cash deposits not exceeding $10,000 per day or its equivalent via telegraphic transfer, among others.

    The CBN had earlier announced the dollar rate unification policy aimed at stopping the different rates obtainable before now. The apex bank is expected to introduce more changes in the coming months.

    Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.

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