CBN lifts restrictions in foreign exchange market

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Lagos, June 19, 2023 -The Central Bank of Nigeria (CBN) on Sunday lifted some of its restrictions on transactions in the foreign exchange market.

A statement by the apex bank said the decisions were taken at an extraordinary meeting of the Bankers’ Committee.

According to the CBN statement, the policy changes were aimed at promoting transparency, enhancing liquidity and price discovery in the market, discourage speculation, enhance customer confidence as well as ensure overall stability in the foreign exchange market.

Some of the new measures include the eligibility of all visible and invisible transactions (medicals, school fees, BTA/PTA, airline, and other remittances) for transactions at the Investors’ and Exporters’ (I & E) window.

Commercial banks are now to ensure expeditious processing of all eligible invisible transactions on behalf of their customers using the applicable rate at the I & E window.

Ordinary domiciliary account holders shall have unfettered access to their funds in their accounts.

Domiciliary account holders are also permitted to utilize cash deposits not exceeding USD$10,000 per day or its equivalent via telegraphic transfer.

Banks are to provide returns to the CBN including the reason for such transactions

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/FT laws and other relevant rules and regulations.

The CBN will prioritize orderly settlement of any committed FX forward transactions as they fall due in order to further boost market confidence.

The apex bank will normalise its Cash Reserve Ratio (CRR) maintenance processes and ensure equity in its implementation across the banking industry.

The CBN assured the banking public that it remains committed to ensuring a stable and efficient FX market that meets the needs of all legitimate users. (GBN)

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