*Issues Further Guidance on Operational Changes to Foreign Exchange
Market
Following the Central Bank of Nigeria (CBN) statement of June 14, 2023, on
new guidelines in the foreign exchange market, an extraordinary Bankers
Committee meeting was held on Friday, June 16, 2023, to discuss its implementation
and implications for the banking public.
These policy changes aim to promote transparency, liquidity and price discovery in the FX market in order to improve FX supply, discourage speculation, enhance
customer confidence and ensure overall stability in the FX market.
According to the Director, Corporate Communications, Dr. Isa Abdulmumin, the
CBN, in line with deliberations at the meeting, provided further guidance to Deposit Money Banks (DMBs) as follows:
1. All visible and invisible transactions (medicals, school fees, BTA/PTA, airline
and other remittances) are eligible for the Investors and Exporters (I&E) window.
2. DMBs shall ensure expeditious processing of all eligible invisible transactions on
behalf of their customers using the applicable rate at the I&E window.
3. Ordinary domiciliary account holders shall have unfettered and unrestricted
access to funds in their accounts. Domiciliary account holders are permitted to utilise cash deposits not exceeding USD$ 10,000 per day or its equivalent via telegraphic transfer. DMBs shall provide returns to the CBN, including the purpose for such transactions.
4. Cash deposits into domiciliary accounts will not be restricted, subject to DMBs
conducting proper KYC, due diligence and adhering to the spirit and letter of
extant AML/CFT laws and other relevant rules and regulations.
5. The CBN will prioritise orderly settlement of any committed FX forward
transactions as they fall due in order to boost market confidence further.
6. The Bank will normalise its CRR maintenance processes and ensure equity in
its implementation across the banking industry.
The CBN will continue to engage stakeholders and issue further guidance as it implements the ongoing reforms.
