The Central Bank of Nigeria (CBN) has released new guidelines for Deposit Money Banks (DMBs) regarding the deposit of foreign currency notes with the central bank.
This directive was outlined in a circular issued by the Director of Currency Operations, Mohammed Solaja, and published on the bank’s website on Friday.
The CBN stated that each bank is permitted a maximum daily deposit of $10 million for USD 100 and USD 50 notes. These deposits can only be made at CBN branches in Abuja and 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 Central Bank of Nigeria (CBN) directed that Deposit Money Banks (DMBs) must notify the apex bank in writing of their intention to make such deposits at least three working days in advance.
Additionally, the CBN stated that smaller denominations, such as $20 notes and below, would be subject to a maximum daily deposit limit of $1 million.