Menu Close

Forex Deposits: CBN releases fresh guidelines for commercial banks to boost liquidity

*The Central Bank of Nigeria approves the Deposit Money Banks may deposit their excess foreign currency notes with Lagos and Abuja branches of the CBN as part of measures to deepen the Foreign Exchange market, boost liquidity, and harmonise exchange rates of the parallel and official markets in the economy

Gbenga Kayode | ConsumerConnect

Further to the banking sector regulator’s ongoing measures to deepen the Foreign Exchange (Forex) market, boost liquidity towards attaining convergence in the exchange rates, the Central Bank of Nigeria (CBN) has issued fresh guidelines to Deposit Money Banks (DMBs) on deposits of foreign currency notes with the Bank.

ConsumerConnect reports the CBN stated the latest guidelines in a circular with Reference Number: COD/DIR/INT/CIR/001/016, which Mohammed Solaja, Director of Currency Operations at the Bank, signed and issued via its corporate Web site Friday, June 28, 2024.

The Bankers’ Bank stipulated that each deposit money bank would be allowed a maximum deposit of $10 million threshold for United States Dollars (USD) 100 notes and USD  50 notes daily.

The banking regulator said: “In order to deepen the foreign exchange market, boost liquidity and attain convergence in the exchange rates of the parallel and official markets, the Central Bank of Nigeria (CBN) has approved that DMBs may deposit their excess foreign currency notes with Lagos and Abuja branches of the bank.”

“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 the correspondent banks.”

Solaja also noted in the circular, that the CBN indicated the banks could make such foreign currency deposits at the CBN branches in Abuja and Lagos respectively.

The Central Bank of Nigeria directed the DMBs to notify the regulator in writing of its intention to make such deposits, at least three working days before such a deposit is made in Abuja or Lagos.

The Bank further said that smaller denominations of $20 notes and below would be at a maximum of $1 million daily.

Kindly Share This Story

Kindly share this story