₦airaland Forum

Central Bank of Nigeria (CBN) has banned the payment of cash into domiciliary accounts in the country.

In a circular released on Wednesday and signed by Olakanmi Gbadamosi, the director of trade and exchange, the central bank said its action followed recent statements by individual banks suspending the payment of foreign currencies into domiciliary accounts. Gbadamosi wrote: “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.”

By this circular, those who deposited foreign currencies into their accounts before the directive will now have to withdraw the cash as they are not going to be allowed to transfer the funds.

https://www.thecable.ng/just-cbn-bans-deposits-dom-accounts

President Buhari, do all you can to protect our naira, even if it takes suspending the current Clueless CBN Governor who only makes knee jerk decisions on major macro economic policies!


May God Bless Buhari For Us!!!

when Gej appointed this man, he was dancing to his tone but as my oga @ the top don take over, CHANGE don cum. if na skelewu you dey dance follow gej before, it's high time you start dancing to fela old school music.

these are the fastest ways we can use to survive the fall of naira. Though it will affect some ppl but we have know choice cos we need to save our economy.

Stealing is now Corruption........

Good move

Kudos

All in d name of FTC

Na wa 2 U o

stale news, barcanista don deal wif dis topic before.

We need to strengthen our Naira. Say No to dollarize economy. If you want to buy something or pay for any service it must be done in Naira.. Sorry Yahoo Boys

“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.

This will cause more harm to the naira. Anyway, this is an overflogged issue. Time will tell

I am going to need a lot of popcorn for the coming days.

Emefiele is gambling but playing it safe....

It is still legal to operate domiciliary account hence we need all the elementary details.

OREMUSSANCTUS:
stale news, barcanista don deal wif dis topic before.

Yeah! barcanista the political professor

NgeneUkwenu:
President Buhari, do all you can to protect our naira, even if it takes suspending the current Clueless CBN Governor who only makes knee jerk decisions on major macro economic policies!


May God Bless Buhari For Us!!!

hahahahaha ...... Ameen

Let's see what the mallams will do now, they can continue hoarding their dollar till eternity.
The cbn has to stop wasting external reserve defending artificial devaluation.

ok

NgeneUkwenu:
President Buhari, do all you can to protect our naira, even if it takes suspending the current Clueless CBN Governor who only makes knee jerk decisions on major macro economic policies!


May God Bless Buhari For Us!!!

NgeneUkwunkita the village economist. What do you want to do with a "strong naira"?? This is not another political kiriji war. It is basic economics. I thought the APC wants to stimulate an export economy. . How can a powerful naira drive export? Lecture, sorry, humour us. .

IsraeliAIRFORCE:
It is still legal to operate domiciliary account hence we need all the elementary details.

Is it impossible for importers to do transactions without this domicillary account sef. Can't we pay naira equivalent and have the banks do the exchange electronically

Obiagelli:
Let's see what the mallams will do now, they can continue hoarding their dollar till eternity.
The cbn has to stop wasting external reserve defending artificial devaluation.

The mallams will just go to Chad, Niger, Benin Republic or Cameroon and open account for depositing the dollars which they will be carrying across the borders from Nigeria then they will continue wiring the transactions from these neighbouring countries into their Nigerian bank accounts

Thousands of Nigerians living outside the country send products to their business partners and family members to sell on their behalf, thereafter return their monies back to them. This policy is going do damaged to these group of people. Many small import businesses have already been excluded from the forex market, even though their products are not prohibited, how will they make payments for products around the world?

This is another knee jerk reaction from the CBN, which will do the Naira and the economy no good.

Where are all those professors, think tanks and technocrats in economics in Nigeria?
They should speak up now and proffer solution to this economic woe before this Doro-dullard plunge us into an economic disaster.

This is elementary trial by error experimental economic policy

Suave.

Obiagelli:
Is it impossible for importers to do transactions without this domicillary account sef. Can't we pay naira equivalent and have the banks do the exchange electronically?

Can someone please answer this question?

Obiagelli:
Is it impossible for importers to do transactions without this domicillary account sef. Can't we pay naira equivalent and have the banks do the exchange electronically

I actually listened to the CBN Director in-charge of monetary policy opined the provision of possible windows to accommodate such transactions and other legitimate businesses hence I wanted the CBN to publish every unambiguous elementary detail before I can be in the best position to critique the policy.

emorse:
Can someone please answer this question?

Simple answer is no. If you go through the Form M process and your transaction is approved, then it's possible.

Form M is an application to import visible goods and also serve as a statistical tool for the government in policy formulation. It is mandatory for all importers to complete and register Form ‘M’ with Authorized Dealers at the time of placing orders whether the transaction is valid for foreign exchange or not. This is currently initiated electronically on Trade Portal provided by the Central Bank of Nigeria in conjunction with the Nigeria Customs Service. Supporting documents for submission of Form M includes PFI (proforma invoice), Insurance Certificate covering 110% of the item of import. Depending on the item of import, other regulatory documents such as NAFDAC permit, SONCAP product certificate, DPR Import Permit, PCN licence, etc.; will also be required

barcanista:
This will cause more harm to the naira. Anyway, this is an overflogged issue. Time will tell

How will it cause more harm? Where do Fx depositors get dollar CASH from? Especially the large depositors. Where? Is dollar our legal tender here?

They're stopping impunity in Nigeria and you're complaining.

The era of business as usual is gone.

barcanista:
This will cause more harm to the naira. Anyway, this is an overflogged issue. Time will tell

Don't be ridiculous, you must have read this part " 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.”"

emorse:
Can someone please answer this question?

Yes through Form A or Form M! That is exactly what CBN wants to achieve with the new policy.

IsraeliAIRFORCE:
I actually listened to the CBN Director in-charge of monetary policy opined the provision of possible windows to accommodate such transactions and other legitimate businesses hence I wanted the CBN to publish every unambiguous elementary detail before I can be in the best position to critique the policy.

I guess we have to wait for the next step.

atlwireles:
Simple answer is no. If you go through the Form M process and your transaction is approved, then it's possible.

Form M is an application to import visible goods and also serve as a statistical tool for the government in policy formulation. It is mandatory for all importers to complete and register Form ‘M’ with Authorized Dealers at the time of placing orders whether the transaction is valid for foreign exchange or not. This is currently initiated electronically on Trade Portal provided by the Central Bank of Nigeria in conjunction with the Nigeria Customs Service. Supporting documents for submission of Form M includes PFI (proforma invoice), Insurance Certificate covering 110% of the item of import. Depending on the item of import, other regulatory documents such as NAFDAC permit, SONCAP product certificate, DPR Import Permit, PCN licence, etc.; will also be required

What then would be the fate of small scale importers who import from aliexpress and their likes?

OK


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