The Central Bank of Nigeria (CBN) has lifted its restriction on domiciliary accounts, allowing account holders to deposit freely, have unrestricted access to funds in accounts, and make up to $10,000 withdrawals daily.
According to the press statement signed by the CBN’s director of the banking supervision department, Haruna Mustafa, the meeting was held to discuss the implementation and implications of the policy changes 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,” the bank said.
“Ordinary domiciliary account holders shall have unfettered and unrestricted access to funds in their accounts.
This development marks a significant shift in the nation’s monetary policy, allowing individuals greater flexibility in managing their funds held in domiciliary accounts.
The new directive provides further guidance to banks on the operational changes to the foreign exchange market.
Recall that the last Friday issued an update on the operational changes to the Foreign Exchange (FX) Market, explaining in detail how it works.
The CBN in an official statement signed by its Director for Financial Markets, Angela Sere-Ejembi confirmed the operational changes to the foreign exchange market.
The apex bank also affirmed that the abolishment of segmentation and all segments are now collapsed into the Investors and Exporter’, I & E window.
With that, the CBN in a way directed commercial banks to remove the cap on the naira at the investors’ and exporters’ window.
It simply means that commercial banks can trade foreign exchange at any rate in the Investors & Exporters window based on a willing buyer, willing seller arrangements.
It also announced the cessation of the RT200 Rebate Scheme and the Naira4Dollar Remittance Scheme, effective June 30, 2023.
The apex bank on Friday via its Twitter handle, however, gave an update on the operational changes to the Foreign Exchange (FX) Market, explaining how it works.
“To collapse all segments in the fx market into the Investors and Exporter’, I & E window means all eligible FX transactions in the market shall only be done via the I&E window, all other windows cease to exist,” the CBN wrote.
“The I & E market functions by a willing buyer, willing seller system, where an entity with demand for FX seeks out another entity with FX to sell at an agreed price through an authorised dealer.
