The Central Bank of Nigeria (CBN) has issued new guidelines to Deposit Money Banks (DMBs) regarding the deposit of foreign currency at its branches.
This directive was contained in a circular issued by the Director of Currency Operators, Mohammed Solaja and posted on the bank’s website on Friday, June 28.
According to CBN new directive each bank can deposit up to $10 million in $100 and $50 notes daily. These deposits are to be made exclusively at the CBN branches in Abuja and Lagos.
The circular stated:
To deepen the foreign exchange market, enhance liquidity, and achieve convergence between parallel and official market exchange rates, the Central Bank of Nigeria (CBN) has authorized DMBs to deposit their surplus foreign currency notes at its Lagos and Abuja branches.”
The move aims to address the increasing demand by DMBs to deposit their forex cash with the CBN for onward credit to their offshore accounts with correspondent banks.
The circular, with reference number COD/DIR/INT/CIR/001/016, also mandates that banks must notify the CBN in writing at least three working days prior to making such deposits.
For smaller denominations, such as $20 notes and below, the maximum daily deposit limit is set at $1 million.
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