Following the lifting of cash deposit restrictions on domestic accounts by the Central Bank of Nigeria, CBN, account holders are now free to withdraw up to $10,000 per day.
The nation’s monetary policy has undergone a substantial change as a result of this development, giving people more freedom to manage the money in their domiciliary accounts.
After deliberating at a special Bankers’ Committee meeting on Sunday, the CBN disclosed this information in a press release.
With regard to the operational modifications to the foreign exchange market, the new directive offers banks more guidance.
Earlier in the week, the bank had announced the consolidation of all sections of the Nigerian forex market into the Investors & Exporters (I&E) window.
The conference was held to review the implementation and ramifications of the policy changes for the banking public, according to a press release issued by Haruna Mustafa, director of the CBN’s banking supervision division.
“These policy changes aim to promote transparency, liquidity, and price discovery in the FX market in order to improve FX supply, discourage speculation, enhance customer confidence and ensure overall stability in the FX market,” the bank said.
“Ordinary domiciliary account holders shall have unfettered and unrestricted access to funds in their accounts.
“Domiciliary account holders are permitted to utilize cash deposits not exceeding USD$ 10,000 per day or its equivalent via telegraphic transfer. DMBs shall provide returns to the CBN including the “purpose” for such transactions.”
Additionally, it stated that cash deposits into domestic accounts would no longer be subject to restrictions, provided that deposit money banks exercised adequate due diligence and complied with the word and spirit of all applicable laws and regulations.
It instructed banks to ensure that any qualified invisible transactions for their customers be processed quickly and in accordance with the official window’s rates.
To further increase market trust, the bank stated that it will give orderly settlement of any committed FX forward transactions top priority.