The Central Bank of Nigeria yesterday announced it has lifted the limits placed on domiciliary accounts.
The apex bank in a statement titled ‘CBN issues further guidance on operational changes to foreign exchange market’ on Sunday said the new regulation will allow account holders to deposit freely, have unrestricted access to funds in accounts and make up to $10,000 withdrawals daily.
It read in part, “Ordinary domiciliary account holders shall have unfettered and unrestricted access to funds in their accounts. Domiciliary account holders are permitted to utilise cash deposits not exceeding $10,000 per day or its equivalent via telegraphic transfer.
“DMBs shall provide returns to the CBN, including the ‘purpose’ for such transactions.
“Cash deposits into domiciliary accounts will not be restricted, subject to DMBs conducting proper KYC, due diligence and adhering to the spirit and letter of extant AML/CFT laws and other relevant rules and regulations.”
According to the CBN, the policy changes will 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.
Furthermore, the CBN noted that all visible and invisible transactions (medicals, school fees, BTA/PTA, airline and other remittances) were eligible for the Investors’ and Exporters’ window.
Banks were urged to ensure expeditious processing of all eligible invisible transactions on behalf of their customers using the applicable rate at the I & E window.