19 June 2023

The Central Bank of Nigeria has announced the removal of cash deposit limitations on domiciliary accounts thereby granting account holders the liberty to withdraw up to $10,000 per day.

This development marks a significant shift in the nation’s monetary policy, allowing individuals greater flexibility in managing their funds held in domiciliary accounts.

The CBN made this disclosure in a press statement on Sunday, after deliberating at an extraordinary Bankers’ Committee meeting.

The new directive provides further guidance to banks on the operational changes to the foreign exchange market.

The bank had announced the unification of all segments of the Nigerian forex market earlier in the week, collapsing all windows into the Investors & Exporters (I&E) window.

According to the press statement signed by the CBN’s director of the banking supervision department, Haruna Mustafa, the meeting was held to discuss the implementation and implications of the policy changes for the banking public.

“These policy changes aim 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,” the bank said.

“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.”

Prior to this announcement, individuals with domiciliary accounts faced limitations on the amount of cash they could deposit and withdraw, hindering international transactions.

It also said the limitations  of cash deposits  into domiciliary accounts suffered by individual  will no longer be restricted, subject to deposit money banks conducting proper due diligence and adhering to the spirit and letter of extant laws and other relevant rules and regulations.

The CBN said all visible and invisible transactions (medicals, school fees, BTA/PTA, airline, and other remittances) are eligible for the investors’ and Exporters’ (I & E) window.

It directed banks to ensure expeditious processing of all eligible invisible transactions on behalf of their customers using the applicable rate on the official window.

The bank said it will prioritize orderly settlement of any committed FX forward transactions to further boost market confidence.

It also said it will normalize its CRR maintenance processes and ensure equity in its implementation across the banking industry.