CBN lift restrictions on domiciliary accounts

The Central Bank of Nigeria (CBN) has announced the lifting of its restrictions on domiciliary accounts, allowing account holders to make daily withdrawals of up to $10,000. This decision was made during an extraordinary Bankers' Committee meeting, as stated in a press release issued by the CBN's director of the banking supervision department, Haruna Mustafa.

The purpose of the meeting was to discuss the implementation and implications of the policy changes for the banking public. The CBN aims to foster transparency, liquidity, and price discovery in the foreign exchange (FX) market through these policy changes. The ultimate goal is to improve the supply of FX, discourage speculation, boost customer confidence, and ensure overall stability in the FX market.

Under the new guidelines, ordinary domiciliary account holders will have unrestricted access to their funds. They are permitted to utilize cash deposits not exceeding $10,000 per day or its equivalent through telegraphic transfer. Deposit Money Banks (DMBs) are required to submit reports to the CBN, including the purpose of such transactions.