The Central Bank of Nigeria (CBN) has introduced new guidelines for Deposit Money Banks (DMBs) concerning the deposit of foreign currency notes.
This update was detailed in a circular issued by Mohammed Solaja, the Director of Currency Operations, and posted on the CBN’s website on Friday.
According to the circular, each bank is now permitted to deposit a maximum of $10 million per day in $100 and $50 notes. These foreign currency deposits can only be made at the CBN branches located in Abuja and Lagos.
“To enhance the foreign exchange market, improve liquidity, and align the parallel and official exchange rates, the Central Bank of Nigeria (CBN) has authorized DMBs to deposit their excess foreign currency notes at the Lagos and Abuja branches of the bank,” the circular stated.
The approval responds to the growing demand by DMBs to deposit their forex cash with the CBN, which will then credit their offshore accounts with correspondent banks.
The circular, referenced COD/DIR/INT/CIR/001/016, requires that DMBs must notify the CBN in writing at least three working days before making such deposits.
For smaller denominations of $20 notes and below, the maximum deposit limit is set at $1 million per day.
