The Central Bank of Nigeria (CBN) has made significant changes to its foreign exchange policies, removing restrictions on domiciliary accounts and increasing the daily withdrawal limit to $10,000.
Following an extraordinary Bankers’ Committee meeting focused on discussing the implementation and implications of these policy adjustments for the banking public, the CBN released a statement providing additional information to Deposit Money Banks (DMBs) regarding the operational changes in the foreign exchange market.
According to the statement, holders of domiciliary accounts are now allowed to utilize cash deposits of up to $10,000 per day or its equivalent through telegraphic transfer.
The CBN asserts that these new policies aim to promote transparency, liquidity, and price discovery in the foreign exchange market. The goal is to increase the supply of foreign exchange, reduce speculative activities, enhance consumer confidence, and ensure overall market stability.
Furthermore, regular domiciliary account holders will now enjoy unrestricted access to their account balances, a notable improvement from the previous limitations.
Previously, there were restrictions on the amount of cash Nigerians could withdraw from their domiciliary accounts. However, this recent development will make access to foreign exchange much easier for Nigerians.
As a result of these policy changes, individuals will have greater flexibility and convenience in managing their foreign currency transactions, ultimately contributing to a more efficient and robust foreign exchange market in Nigeria.
