Victor Ezeja
The Central Bank of Nigeria (CBN) has released new guidelines for the deposit of foreign currency notes by Deposit Money Banks (DMBs).
In a circular dated 27 June 2024 signed by CBN’s acting director, Currency Operations Department, Mohammed Olayemi, the apex bank directed DMBs to deposit excess foreign currency notes at its branches in Lagos and Abuja.
Join our WhatsApp ChannelThe CBN said the move was part of efforts to deepen the foreign exchange market, boost liquidity and attain convergence in the exchange rates of the parallel and official markets.
It 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 correspondent banks.”
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According to the circular, the CBN said each bank is allowed a maximum daily deposit of US$10 million in 100 and 50 Dollar notes; $S1 million USD20 notes; £1 million (GBP) and €1 million (Euros). “Deposits may be in USD100, USD50, USD20, USD10, USD5, USD1 and all GBP and EURO denominations. Each denomination shall be in separate boxes.”
The CBN also mandated DMBs to “give at least three 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.”
The CBN also requires all DMBs to engage the services of only CBN-registered ClT companies for deposits of foreign currency notes, adding that the time for accepting deposits shall be between 8 am and 12pm.
The apex bank further stated that it shall after a successful transaction, “credit the DMBs account through their offshore correspondent bank within the cycle time of T+5.
“The handling charge of 0.30 per cent of the authenticated amount shall be recovered from the DMBs current account with CBN.”
The Bank warned that it would not accept forex deposits from any DMB that fails to comply with any of the guidelines.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
