The Central Bank of Nigeria (CBN) has officially barred banks in the country from accepting foreign currency cash deposits into customers’ domiciliary accounts.
A circular issued by the CBN on Wednesday and signed by the director of trade and exchange, Olakanmi Gbadamosi, explained that the statement became necessary so that customers will feel embarrassed when their banks refuse to collect such monies from them.
CBN 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 noted that: “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.”
The naira is beginning to appreciate against the dollar significantly after banks started denying their customers opportunity to make cash deposits of dollar, pound and euro into their domiciliary accounts.
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