CBN issues new guidelines for dollar, other foreign currencies deposit

The Central Bank of Nigeria (CBN) has introduced new guidelines aimed at enhancing the foreign exchange (FX) market, boosting liquidity, and achieving convergence in exchange rates between parallel and official markets.

In a circular issued on Friday by the Acting Director of Currency Operations, Solaja Olayemi, the CBN announced that banks are now permitted to deposit excess foreign currency notes at its branches in Lagos and Abuja.

This decision follows increasing demand from banks to deposit FX cash with the CBN, facilitating onward credit to their offshore accounts with correspondent banks.

Effective immediately, banks are required to provide three working days’ notice and a list of currency owners before depositing forex cash.

The maximum deposit limit is set at $10 million, with specific limits for higher denominations like $100 and $50, and caps for British Pound Sterling (GBP) and Euro denominations at £1 million and €1 million respectively.

The revised framework mandates banks to engage only CBN-registered CIT companies for deposits and requires two bank representatives to witness and confirm each deposit.

Deposits will be accepted between 8 a.m. and 12 p.m. daily at CBN branches in Abuja and Lagos, with authentication completed on the same day.

The CBN will credit the depositing banks’ accounts through offshore correspondent banks within a T+5 cycle time, while applying a handling charge of 0.30% on the authenticated amount.

The CBN emphasized strict adherence to these guidelines, warning that failure to comply will result in refusal of forex deposits from non-compliant banks.

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