Temporary Suspension of Foreign Currency Cash Deposits

Please be informed that due to the unavailability of outlets for managing foreign currency cash deposits, we have found it necessary to temporarily suspend receipts of foreign currency cash deposits into domiciliary accounts at all our branches nationwide from Monday, 3rd of August 2015.

In addition, foreign currency cash deposits into domiciliary accounts made prior to this notice will not be eligible for outward electronic transfer and can only be withdrawn as cash.

Please note that this temporary measure, does not affect electronic transfer of funds into or from your domiciliary accounts and, you will continue to have access to foreign currency cash withdrawals from your account.

Whilst we have had to take this step to temporarily suspend foreign currency cash deposits, we would like to assure you that we are working hard at finding alternative outlets and a quick solution to this situation.

Kindly accept our sincere apologies for any inconvenience this might cause.
Thank you for banking with us.

From: GTBank@GTBank.com

Question:
From the bolded parts, it seems the new policy is to monitor/record all incoming currencies (deposits) electronically. As old balance can only be cashed out and new deposits will only be done electronically, new withdrawals will still be done both electronically and by cash. That suggests means of monitoring/controlling the existing "dirty cash" foreign currencies in circulation as they can no longer be laundered back into the system by deposit henceforth. But then, what will happen to the old domiciliary account balance that can only be cashed out, and what's the fate of mallam/abooki who will buy the cashed dollar, pounds or euro from owners? What will they do with the cash if it can no longer be deposited by cash but only electronic transfer? Is this policy affecting only GTBank?

About 10 other banks already did this last week according to this article:

http://www.thisdaylive.com/articles/naira-rebounds-in-parallel-market-as-banks-reject-dollar-deposits/216163/

I think that there will be increased carrying of cash across Nigeria's borders to countries where FcY cash deposits is still allowed for sure.

I think the market is still trying to figure out how to effectively react to this decision and what effect it will have on the exchange rate in the parallel market. The next couple of weeks are going to be really interesting, following keenly.

let wait and see if this can solve our weaken naira.
even the use of domiciliary accounts are not active like before,
as far as naira savings accounts can serve the purpose.
i used mine last was 2009 when still trading fx

Beyond the issue of monitoring, there are cost implications of keeping foreign currencies in the banks.

Currently, banks vaults are reportedly awash with dollars...

BTW, a few banks are still accepting forex cash deposits though subject to a cap.

Before Nko, How many Nigerians have domiciliary account?

But hope i can make payment online with my cards

guys Stanbic IBTC Bank visa card is the only way now....give it a try and thank me later...

a visit to any of their branch will tell you all.

@ arbitrage and all

Does this affect clearing of foreign cheque into ones domiciliary account?

legalwealth:
@ arbitrage and all

Does this affect clearing of foreign cheque into ones domiciliary account?

I do not think this policy should affect cheque clearing since such instrument is not cash and it's track-able/controllable by the bank(s).

Manweysabi:
But hope i can make payment online with my cards

Sure you should be able to whether naira or dollar denominated card.

arbitrage:


I do not think this policy should affect cheque clearing since such instrument is not cash and it's track-able/controllable by the bank(s).

I assumed the same thing.

I was told it is not as well possible to do that at one of their branches.Called GTCONNECT and their voice was shaking.

Just trying to clear a paypal cheque but I've been busy getting back to them once again.

One thing with the policy makers in Nigeria is that they tend to be book smart and not street smart. The reason I say this is that most international transfers by traders in Nigeria are done in the black market (Mallam). There are thousands of Mallams that are into illegal transfer to any country of the world and that is what most traders do. Traders do not have time for domiciliary account with all it restrictions. If the government is serious about curbing dollar from exiting the shores, what have they done about corrupt official at the airport that would allow far more than the regulated amount on individual as long as they have their own cut. How about the custom officers who would turn blind eyes to dubious FORM A and M. Do they care to ask those importers how the money used for the importation was transferred. They know those Form M are fake, which amounts to sabotaging the transfer policies. If nothing is done to block these loopholes, no meaning progress would be made, it would only amount to waste of effort.

legalwealth:


I assumed the same thing.

I was told it is not as well possible to do that at one of their branches.Called GTCONNECT and their voice was shaking.

Just trying to clear a paypal cheque but I've been busy getting back to them once again.

I confirmed from Union Bank too that foreign check clearing is also not allowed any longer. So, your PayPal cheque may not sail through if that statement is true. I would rather suggest you try multinational banks like Standard Chartered and Stanbic to see if they can still handle it for now but I doubt it anyway. Otherwise, you may send it to your US bank for crediting or sell to me as I can deposit cheque into my US bank account by mere snapping the check (cheque) online with my smartphone. But the only limitation would be that PayPal has drawn the check (cheque) in your name already.

The dollar/pounds/euro restriction in Nigeria seems to be getting worse or rather more serious with this email attached below that I received lately, which shows $300 limit to online and POS spending. Someone was suggesting/thinking the GTBank dollar card may have no such limit but the restriction remains how to get cashless dollar in funding such dollar card.

arbitrage:


I confirmed from Union Bank too that foreign check clearing is also not allowed any longer. So, your PayPal cheque may not sail through if that statement is true. I would rather suggest you try multinational banks like Standard Chartered and Stanbic to see if they can still handle it for now but I doubt it anyway. Otherwise, you may send it to your US bank for crediting or sell to me as I can deposit cheque into my US bank account by mere snapping the check (cheque) online with my smartphone. But the only limitation would be that PayPal has drawn the check (cheque) in your name already.

The dollar/pounds/euro restriction in Nigeria seems to be getting worse or rather more serious with this email attached below that I received lately, which shows $300 limit to online and POS spending. Someone was suggesting/thinking the GTBank dollar card may have no such limit but the restriction remains how to get cashless dollar in funding such dollar card.

Thanks for the update.
I spoke with a UBA's top official at their head office in Marina and he told me it won't affect such and as well explained him detail while he said so.

It seems PayPal is now doing wire transfer to any USA bank bank upon request.I will as well chat you up.

@ Arbitrage

The CBN policy is also temporary but I'm scared they will make it permanent since our selfish banks have decided to be selling dollars,pounds and euros.

arbitrage:


I confirmed from Union Bank too that foreign check clearing is also not allowed any longer. So, your PayPal cheque may not sail through if that statement is true. I would rather suggest you try multinational banks like Standard Chartered and Stanbic to see if they can still handle it for now but I doubt it anyway. Otherwise, you may send it to your US bank for crediting or sell to me as I can deposit cheque into my US bank account by mere snapping the check (cheque) online with my smartphone. But the only limitation would be that PayPal has drawn the check (cheque) in your name already.

The dollar/pounds/euro restriction in Nigeria seems to be getting worse or rather more serious with this email attached below that I received lately, which shows $300 limit to online and POS spending. Someone was suggesting/thinking the GTBank dollar card may have no such limit but the restriction remains how to get cashless dollar in funding such dollar card.

arbitrage do you still buy paypal .i need to sell

We can buy your funds using our paypal account. Prompt and efficient service.
See our contact in the signature

https://www.nairaland.com/2359218/welcome-hisenjos-paypal-nairaland-customer

ponti93:

arbitrage do you still buy paypal .i need to sell

legalwealth:


Thanks for the update.
I spoke with a UBA's top official at their head office in Marina and he told me it won't affect such and as well explained him detail while he said so.

It seems PayPal is now doing wire transfer to any USA bank bank upon request.I will as well chat you up.

You mean PayPal even stopped bank withdrawal at a time? I thought all foreign (US) PayPal accounts can withdraw to US bank account as they usually do. It seems the CBN restriction on foreign currencies is yet to be over going by this email below I received yesterday from First Bank.

arbitrage:


You mean PayPal even stopped bank withdrawal at a time? I thought all foreign (US) PayPal accounts can withdraw to US bank account as they usually do. It seems the CBN restriction on foreign currencies is yet to be over going by this email below I received yesterday from First Bank.

I didn't say PayPal stopped that but was trying to tell you that PayPal now as well offer Wire Transferring.

legalwealth:


I didn't say PayPal stopped that but was trying to tell you that PayPal now as well offer Wire Transferring.

You mean PayPal now does wire transfer to any bank. Is this option available only to US PayPal or other countries as well?

fadaz:
You mean PayPal now does wire transfer to any bank. Is this option available only to US PayPal or other countries as well?

Yes and you need to call them for that.

arbitrage:


You mean PayPal even stopped bank withdrawal at a time? I thought all foreign (US) PayPal accounts can withdraw to US bank account as they usually do. It seems the CBN restriction on foreign currencies is yet to be over going by this email below I received yesterday from First Bank.

I have been sending messages to your bbm but no response.

Can you help fund foreign betting sites like bet365?

legalwealth:


Yes and you need to call them for that.

Do you mean yes to other countries because PayPal has always been withdrawing to US banks before? Is Nigeria among such wire transfer destination? That's good development anyway.

Krak:


I have been sending messages to your bbm but no response.

Can you help fund foreign betting sites like bet365?

Sorry my phone and it's BBM has been without internet for sometime now as I concentrated on tablet and ultrabook. It depends on payment method that your website requires anyway. So what funding method are you looking at there?

I made a PayPal payment last week without issues. So that puts the matter to rest: you can still make your PayPal payments.

arbitrage:


I confirmed from Union Bank too that foreign check clearing is also not allowed any longer. So, your PayPal cheque may not sail through if that statement is true. I would rather suggest you try multinational banks like Standard Chartered and Stanbic to see if they can still handle it for now but I doubt it anyway. Otherwise, you may send it to your US bank for crediting or sell to me as I can deposit cheque into my US bank account by mere snapping the check (cheque) online with my smartphone. But the only limitation would be that PayPal has drawn the check (cheque) in your name already.

The dollar/pounds/euro restriction in Nigeria seems to be getting worse or rather more serious with this email attached below that I received lately, which shows $300 limit to online and POS spending. Someone was suggesting/thinking the GTBank dollar card may have no such limit but the restriction remains how to get cashless dollar in funding such dollar card.

I know this is over a year ago. But do you still so this @bolded?
I sent you a mail.

Emmyk:

I know this is over a year ago. But do you still so this @bolded?
I sent you a mail.

Yes Sir. It's still working. I cannot remember getting your mail please.

arbitrage:


Yes Sir. It's still working. I cannot remember getting your mail please.

I'll mail you again. I think I need your help/service.