Foreign Currencies

CBN clarifies uncertainties over operations of domiciliary accounts

Isola Moses | ConsumerConnect

Clearing the widespread suspicions on the purported proscription of operations of domiciliary accounts, the Central Bank of Nigeria (CBN) has said that it has not prohibited the acceptance of foreign currency cash deposits by the Deposit Money Banks (DMBs) in the country.

Mr. Isaac Okoroafor, Director, Corporate Communications of CBN, made the clarification while speaking to newsmen in Abuja, Sunday.

Agency report states a domiciliary account is a type of current account that allows you to fund it with foreign currencies, such as Dollars, Pounds or Euros, and enables you to do foreign transactions on such an account.

The account could be used to transfer money to another country or receive foreign currency from another country.

Mr. Okoroafor clarified that only electronic fund transfers into Domiciliary Accounts could also be transferred from such accounts, while cash deposits into such accounts are as well allowed to be withdrawn in cash.

The clarification was necessary due to misrepresentation of facts and uncertainties surrounding the operations of domiciliary accounts in Nigeria, he stated.

The CBN Director of Corporate Communications, therefore, urged stakeholders and other interested parties in banking sector to always endeavour to seek clarification on issues.

Rumours and speculative tendencies are detrimental to the financial system, he noted.

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