The Central Bank of Nigeria (CBN) has issued fresh guidelines on foreign currency deposits by deposit money banks (DMBs).
CBN made this known in a circular signed by Solaja Olayemi,
its acting director of the currency operations department on Friday.
In the circular, the apex bank directed banks to transfer
all excess foreign currency notes to its Lagos or Abuja branches.
The financial regulator said this is aimed at boosting
liquidity in the foreign exchange market.
According to CBN, each bank would be allowed a maximum
deposit of $10 million threshold for $100 notes and $50 notes daily.
“In order to deepen the foreign exchange market, boost
liquidity and attain convergence in the exchange rates of the parallel and
official markets, the Central Bank of Nigeria (CBN) has approved that DMBs may
deposit their excess foreign currency notes with Lagos and Abuja branches of
the Bank,” CBN said.
“The approval is a response to the increasing demand by DMBs
to deposit their forex cash with CBN for onward credit to their off-shore
accounts with the correspondent banks.”
‘3 WORKING DAYS NOTICE FOR INTENT TO DEPOSITS’
The financial regulator said the banks should adhere
strictly to its guidelines such as giving three days notice showing intent to
deposit foreign currencies.
“Give at least three (3) working days’ notice of their
intent to deposit forex cash, in writing to the branch controller, CBN Lagos
or/and Abuja. This must be accompanied by the list of owners of foreign
currency to be deposited,” CBN said.
“All deposits must be within the threshold of the following
per day: (i) USD higher bills ($100 and $50) maximum limit of $10 million. (ii)
USD lower bills (20 and below) maximum limit of $1 million. (iii) GBP notes a
maximum limit of £1 million. (iv) EURO notes – maximum limit of €1 million.
“Two (2)
representatives of the depositing bank must be present to witness and confirm
the amount to be deposited.
“Deposits may be in $100, $50, $20, $10, $5, $1 and all GBP
and EURO denominations. Each denomination shall be in separate boxes.
“The DMBs shall engage the services of only CBN-registered
CIT companies for deposits of foreign currency notes.
“The time for accepting deposits shall be between 8am and
12pm.”
CBN said Abuja and Lagos branches would receive, count and
authenticate deposits in the presence of the representatives of the depositing
bank on the same day.
“The bank shall credit the DMBs account through their
correspondent bank within the cycle time of T+5.” the apex bank said.
“The handling charge
of 0.30 per cent of the authenticated amount should be recovered from the DMB
current account with CBN.
“The Bank would not accept forex deposits from any DMB that
fails to comply with any of the guidelines.”
On September 12,
2023, the CBN asked banks to stop utilising gains from the revaluation of the
naira to pay dividends or finance operations.
Advertise on NigerianEye.com to reach thousands of our daily users
No comments
Post a Comment
Kindly drop a comment below.
(Comments are moderated. Clean comments will be approved immediately)
Advert Enquires - Reach out to us at NigerianEye@gmail.com