By The New Diplomat Business Desk
The Central Bank of Nigeria (CBN) has released new guidelines to regulate Depositing Money Banks (DMBs) on the deposit of foreign currency notes with the apex bank.
In the directive, outlined in a circular issued by the Director of Currency Operators, Mohammed Solaja and published on the bank’s website, the apex bank stipulates that each bank now has a maximum deposit of $10 million threshold for USD 100 notes and USD 50 notes daily.
In the circular with reference number, COD/DIR/INT/CIR/001/016, the apex bank directed that DMBs must notify the apex Bank in writing of its intention to make such deposits, at least three working days before such a deposit is made.
The circular further specified that these foreign currency deposits can only be made at the CBN branches in Abuja and Lagos.
The statement reads in part: “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.”
According to the apex bank, smaller denominations of $20 notes and below would be at a maximum of $1 million daily.
