CBN issues new foreign currency deposit guidelines

The Central Bank of Nigeria (CBN) has released updated rules to Deposit Money Banks (DMBs) regarding the deposit of foreign currency notes with the central bank.

Mr. Mohammed Solaja, Director of Currency Operators, published circular no. COD/DIR/INT/CIR/001/016 on the bank’s website, directing DMBs to notify the apex in writing of their plan to make such deposits at least three working days in advance.

These foreign currency deposits are exclusively available at CBN branches in Abuja and Lagos.

It further stated that each bank will be allowed to deposit a maximum of $10 million in USD 100 and USD 50 notes per day.

The CBN stated that lower denominations of $20 and below would be subject to a daily limit of $1 million.

The British Pound and Euro were similarly set at GBP 1 million and EUR 1 million per day per DMB.

According to the circular, each denomination would be in its box, with two representatives from a DMB desiring to make. Deposits must be present to observe the counting and verify the amount.

It also stated that only CBN-registered CIT businesses for the deposit of foreign currency notes would be permitted to represent the DMBs in the operation.

The CBN mandated that the deposits take place between 8 a.m. and 12 p.m. and that the selected branches confirm the deposits on the same day.

The handling charge, it added, would be 0.30 percent and would be deducted from DMBs’ current accounts with the CBN.

The bank stated that the new instructions override the circular dated June 17, 2017 (COD/DIR/GEN/CMF/11/094).