The Central Bank of Nigeria (CBN) has released updated rules to Deposit Money Banks (DMBs) regarding the deposit of foreign currency notes with the central bank.
This directive was outlined in a circular written by Mohammed Solaja, Director of Currency Operators, and posted on the bank’s website on Friday.
The CBN stated that each bank would be limited to a daily deposit of $10 million for USD 100 notes and USD 50 notes, and that such foreign currency deposits may only be made at CBN locations in Abuja or Lagos.
“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.