CBN Issues Fresh Directive On Foreign Currency Deposit

The Central Bank of Nigeria (CBN) has released updated guidelines for Deposit Money Banks (DMBs) regarding the deposit of foreign currency notes with the apex bank.

Naija News reports that a circular issued by the Director of Currency Operators, Mohammed Solaja and published on the bank’s website on Friday, outlined the new directive.

According to the CBN, each bank can deposit a maximum of $10 million in USD 100 notes and USD 50 notes daily. These foreign currency deposits can only be made at CBN branches in Abuja and Lagos.

The circular noted that the apex bank authorized DMBs to deposit excess foreign currency notes at the bank’s branches in Lagos and Abuja to enhance the foreign exchange market, increase liquidity, and achieve convergence in exchange rates between the parallel and official markets.

“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,” the CBN circular with reference number, COD/DIR/INT/CIR/001/016, noted.

The central bank also instructed deposit money banks to inform the bank in writing about their plans to make deposits at least three working days prior to the deposit being made.

According to the CBN, smaller denominations of $20 notes and below will be limited to a maximum of $1 million per day.