The Central Bank of Nigeria (CBN) has lifted the savings and withdrawal limits it placed on domiciliary accounts.
The apex bank has also increasing the daily withdrawal limit to $10,000.
This is contained in a new policy change it released recently.
According to the Director, Corporate Communications, Dr Isa AbdulMumin, these policy changes aims to promote transparency, liquidity and price discovery in the FX market.
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“Ordinary domiciliary account holders shall have unfettered and unrestricted access to funds in their accounts. Domiciliary account holders are permitted to utilise cash deposits not exceeding $ 10,000 per day or its equivalent via telegraphic transfer.
“DMBs shall provide returns to the CBN, including the ‘purpose’ for such transactions.
“Cash deposits into domiciliary accounts will not be restricted, subject to DMBs conducting proper KYC, due diligence and adhering to the spirit and letter of extant AML/CFT laws and other relevant rules and regulations.”
The initial limit of $5000 a month
Recall that in 2021, the apex bank placed a limit on domiciliary account at $5000 a month.
In a statement then, the apex bank had said thus:
“The maximum limit for foreign currency transfers by cash deposits is now $5,000 per month.
“This means that only a maximum of $5,000 monthly will be allowed for transfers if the source of funds is a cash deposit into a domiciliary account.
“Cash deposits of foreign currencies other than USD may be paid into domiciliary accounts (subject to an equivalent of $5,000 monthly limit) but will not be allowed for transfer purposes.”
However, the lifting of the limit, according to CBN, will help to promote transparency, liquidity, and price discovery in the FX market in order to improve FX supply, discourage speculation, enhance customer confidence and ensure overall stability in the FX market.
The statement also noted that all visible and invisible transactions (medicals, school fees, BTA/PTA, airline and other remittances) were eligible for the Investors’ and Exporters’ window.
Also, in the statement, CBN urges banks to ensure expeditious processing of all eligible invisible transactions on behalf of their customers using the applicable rate at the I & E window.
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