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The Central Bank of Nigeria (CBN) has issued fresh guidelines to Deposit Money Banks (DMBs) on the deposit of foreign currency notes with the apex bank.
The directive was contained in a circular issued by the Director of Currency Operators, Mohammed Solaja and posted on the bank’s website on Friday.
The central bank 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”, reads the circular numbered COD/DIR/INT/CIR/001/016.
“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.”
The apex bank stated that smaller denominations of $20 notes and below would be at a maximum of $1 million daily. British Pound and Euro were also fixed at GBP 1 million and Euro 1 million per day per DMB.
The circular says each denominations would be in separate boxes and two representatives of a DMB wanting to make deposits must be present to witness the counting and confirm the amount.
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