Following the lifting of cash deposit restrictions on domestic accounts by the Central Bank of Nigeria, 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 announced the consolidation of all sections of the Nigerian forex market into the Investors and 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 stated.
The funds in ordinary domiciliary account holders’ accounts shall be accessible without hindrance or restriction. Holders of domiciliary accounts may use cash deposits up to $10,000 USD or its equivalent via telegraphic transfer per day. The CBN must receive returns from DMBs that include the “purpose” of 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.
All visible and invisible transactions, including those involving healthcare, education, BTA/PTA, travel, and other transfers, are eligible for the investors’ and exporters’ (I & E) window, according to the CBN.