CBN Sets New Limits For Foreign Currency Deposits At Commercial Banks

The Central Bank of Nigeria has issued updated guidelines to Deposit Money Banks concerning the deposit of foreign currency notes.

This directive was detailed in a circular issued by the Director of Currency Operations, Mohammed Solaja, and posted on the bank’s website on Friday.

The CBN specified that each bank is allowed a maximum daily deposit of $10 million in USD 100 and USD 50 notes.

These deposits can only be made at the CBN branches in Abuja and Lagos.

In the circular with reference number COD/DIR/INT/CIR/001/016, the apex bank directed that DMBs must notify the CBN in writing of their intention to make such deposits at least three working days in advance.

Additionally, for smaller denominations of $20 notes and below, the maximum daily deposit is set at $1 million.

“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 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 correspondent banks”, CBN said.