The Central Bank of Nigeria (CBN) has announced an increase in the withdrawal limit on domiciliary accounts as part of ongoing reforms in the foreign exchange policies. In a circular issued to Deposit Money Banks (DMBs) on Sunday, the CBN stated that the daily withdrawal limit for domiciliary accounts has been raised to $10,000.
Previously, the withdrawal limit for domiciliary accounts was $10,000 per week or per month, depending on the instructions from the apex bank during the tenure of Governor Emefiele. However, with the new directive, individuals can now withdraw up to $10,000 per day from their domiciliary accounts.
The decision came after an extraordinary Bankers’ Committee meeting, which aimed to discuss the implementation and implications of the policy changes for the banking public. The CBN emphasized that the new policies are intended to promote transparency, liquidity, and price discovery in the foreign exchange market, with the aim of enhancing FX supply, discouraging speculation, boosting customer confidence, and ensuring overall stability.
According to the circular issued by Haruna Mustafa, the Director of the CBN’s Banking Supervision Department, all visible and invisible transactions, including medicals, school fees, BTA/PTA, and other remittances, are eligible for the Investors’ and Exporters’ (I&E) window. Deposit Money Banks are expected to promptly process all eligible invisible transactions on behalf of their customers using the applicable exchange rate at the I&E window.
Furthermore, ordinary domiciliary account holders will now have unrestricted access to funds in their accounts. They are permitted to utilize cash deposits up to $10,000 per day or its equivalent through telegraphic transfer. DMBs are required to provide returns to the CBN, including the purpose of such transactions.
The circular also stated that cash deposits into domiciliary accounts will not be restricted, provided that DMBs comply with proper KYC (Know Your Customer) procedures, due diligence, and adhere to anti-money laundering and counter-terrorism financing laws, as well as other relevant regulations.
In addition, the CBN emphasized its commitment to prioritizing the orderly settlement of any committed foreign exchange forward transactions, which will further enhance market confidence. The bank also plans to normalize its Cash Reserve Ratio (CRR) maintenance processes and ensure equitable implementation across the banking industry.
