See CBN new instructions to banks on foreign currency deposit

• The Central bank of Nigeria has released fresh guidelines for foreign currency deposits to all Nigerian banks
• The instruction is for all banks including Access Bank and United Bank for Africa (UBA), Zenith bank
• The apex banks instruction is part of its ongoing efforts to sanitize the Nigerian foreign exchange markets

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Central Bank of Nigeria (CBN) has issued new guidelines to Deposit Money Banks (DMBs) regarding the deposit of foreign currency at its branches.

This directive was contained in a circular issued by the Director of Currency Operators, Mohammed Solaja and posted on the bank’s website on Friday, June 28.

CBN governor continues to make changes on Nigerian forex market. Photo credit: Betty Laura Zapata
Source: Getty Images

CBN new instructions to banks

According to CBN new directive each bank can deposit up to $10 million in $100 and $50 notes daily. These deposits are to be made exclusively at the CBN branches in Abuja and Lagos.

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The circular stated:

To deepen the foreign exchange market, enhance liquidity, and achieve convergence between parallel and official market exchange rates, the Central Bank of Nigeria (CBN) has authorized DMBs to deposit their surplus foreign currency notes at its Lagos and Abuja branches."

The move aims to address the increasing demand by DMBs to deposit their forex cash with the CBN for onward credit to their offshore accounts with correspondent banks.

The circular, with reference number COD/DIR/INT/CIR/001/016, also mandates that banks must notify the CBN in writing at least three working days prior to making such deposits.

For smaller denominations, such as $20 notes and below, the maximum daily deposit limit is set at $1 million.

Banks announce new requirement to buy dollars

Earlier, Legit.ng reported that Nigerian banks released a fresh requirement to customers looking to buy foreign currencies.

The new update comes as the naira records a strong performance in both the official and unofficial markets.

There are strong expectations that the currency's value will improve to at least N1,300 in the coming days.

Source: Legit.ng