The Central Bank of Nigeria (CBN) has introduced updated guidelines for Deposit Money Banks (DMBs) concerning the deposit of foreign currency notes, aimed at enhancing operational efficiencies and boosting market liquidity.
According to a circular issued by Mohammed Solaja, Director of Currency Operations at the CBN, and posted on the bank's official website on Friday, each DMB is now permitted to deposit a maximum of $10 million daily in USD 100 and USD 50 notes. These deposits are restricted to CBN branches located in Abuja and Lagos.
The directive, outlined in circular reference number COD/DIR/INT/CIR/001/016, mandates DMBs to notify the CBN in writing at least three working days in advance of their intention to deposit such sums.
For smaller denominations of $20 notes and below, the maximum daily deposit limit is set at $1 million.
In a statement, the CBN emphasized that the new guidelines are intended to deepen the foreign exchange market, enhance liquidity, and facilitate convergence between parallel and official exchange rates.
"The approval responds to the growing demand from DMBs to deposit excess foreign currency notes with the CBN, which will subsequently be credited to their offshore accounts with correspondent banks," the CBN stated.
The updated guidelines underscore the CBN's commitment to ensuring efficient foreign exchange operations while maintaining stability in the financial sector. Banks are expected to comply with these regulations to streamline their foreign currency operations effectively.
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gogoman
Northrop
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