CBN Releases New Guidelines on Foreign Currency Deposits – What You Need to Know

The Deposit Money Banks (DMBs) have been given new instructions by the Central Bank of Nigeria (CBN) regarding the deposit of foreign currency notes with the apex bank.

This guidance was communicated through a circular issued by the Director of Currency Operators, Mohammed Solaja, and published on the bank’s official website on Friday.

The CBN specified that each bank can deposit a maximum of $10 million threshold for USD 100 notes and USD 50 notes daily, with deposits only accepted at CBN branches in Abuja and Lagos.

The aim of this directive is to enhance the foreign exchange market, increase liquidity, and achieve convergence in exchange rates between the parallel and official markets, as stated in the circular.

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DMBs are now permitted to deposit excess foreign currency notes at the Lagos and Abuja branches of the CBN, in response to the growing demand from banks to deposit forex cash with the apex bank for onward credit to their offshore accounts.

The circular, identified by reference number COD/DIR/INT/CIR/001/016, mandates DMBs to inform the CBN in writing at least three working days before making such deposits.

Additionally, smaller denominations of $20 notes and below are limited to a maximum of $1 million daily, according to the directives from the apex bank.