Deposit Money Banks (DMBs) have received fresh guidelines from the Central Bank of Nigeria (CBN) on the deposit of foreign currency notes with the apex bank.
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.
CBN disclosed that each bank would be allowed a maximum deposit of $10 million threshold for USD 100 notes and USD 50 notes daily, saying such foreign currency deposits can only be made at the CBN branches in Abuja and Lagos.
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“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 apex bank directed DMBs must notify the apex in writing of its intention to make such deposits, at least three working days before such a deposit is made.
According to the apex bank, smaller denominations of $20 notes and below would be at a maximum of $1 million daily.