The Central Bank of Nigeria (CBN) has officially
barred banks in the country from accepting
foreign currency cash deposits into customers’
domiciliary accounts.
The directive was contained in a circular issued
by the CBN on Wednesday and signed by the
director of trade and exchange, Olakanmi
Gbadamosi.
The CBN, in the circular, the central bank
explained that its action is in tandem with have
decision of banks that have notified their
customers that they would no longer accept
foreign exchange cash deposits from them.
The apex bank also advised those who have
deposited foreign currencies into their accounts
before the directive to either withdraw the cash
as they will not be allowed to transfer the funds.
The circular reads in part: “The Central Bank of
Nigeria has considered the recent statements by
Deposit Money Banks (DMBs) concerning the
large volume of foreign currencies in their vaults
and the decision to stop accepting foreign
currency cash deposits into customers’
domiciliary accounts as a welcome development.
“Therefore, in its continued efforts to stop illicit
financial flows in the Nigerian banking system
which aligns with the anti-money Laundering
stance of the Federal Government, the CBN hereby
prohibits from the date of this circular the
acceptance of foreign currency cash deposits by
DMBs.
“For foreign currency cash lodgments made prior
to the date of this circular, the account holder
has the option to either withdraw his or her
foreign currency cash or the Naira equivalent. For
the avoidance of doubt, only wire transfers to and
from Domiciliary Accounts are henceforth
permissible.
“The CBN advises individuals that wish to source
foreign currency for eligible and legitimate
purposes such as BTA, PTA medical, mortgage,
school fees, goods etc. to do so through
recognized channels with the use of Form ‘A’ for
“invisible” and Form ‘M’ for “visible”
transactions.”
Before now, some banks including Fidelity Bank
Plc, Guaranty Trust Bank Plc and Standard
Chartered Bank, have already informed their
customers they were going to stop receiving
foreign currency cash deposit due to “lack of
available foreign exchange cash outlets.”
The naira had appreciated against the dollar
signifcantly after banks started denying their
customers opportunity to make cash deposits of
dollar, pound and euro into their domiciliary
accounts.
It was also anticipated that the US dollar will
further tumble against the naira at the parallel
market this week as Deposit Money Banks
continue to reject cash deposit of foreign
currencies into customers’ domiciliary accounts.
However, the naira fell N235 to US$1 in the
parallel market on August 4, despite appreciating
to N209 barely 24 hours earlier.
Reacting to this development, foreign exchange
dealers were hopeful that the naira would still
appreciate again against the dollar at the black
market.

http://dailyindependentnig.com/2015/08/cbn-officially-bans-foreign-currency-cash-deposits-nigeria/

K

Noted!

madgoat:
Noted!

2nded