The Central Bank of Nigeria (CBN) has issued a new set of guidelines to Deposit Money Banks (DMBs) on the deposit of foreign currency notes with the apex bank.
The guidelines are contained in a circular signed by the Director of Currency Operations, Mohammed Solaja and posted on the bank’s website.
The new guidelines state that each bank would be allowed a maximum deposit of $10 million threshold for USD 100 notes and USD 50 notes daily, and such foreign currency deposits can only be made at the CBN branches in Abuja and Lagos.
“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 circular read.
“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.”
In the circular with reference number, COD/DIR/INT/CIR/001/016, the CBN said DMBs must notify it in writing of its intention to make such deposits, at least three working days before such a deposit is made.
It further said smaller denominations of $20 notes and below would be at a maximum of $1 million daily.
