CBN Increases Domiciliary Account Withdrawal Limit to $10,000 per Day, Issues 6 Other Directives

The Central Bank of Nigeria (CBN) has increased the withdrawal limit on domiciliary accounts, as it continues to reform the foreign exchange policies.

CBN has been reviewing the foreign exchange following President Bola Tinubu directive to increase forex supply in the FX market to stabilise exchange rates.

The CBN said in a circular released on Sunday, but dated June 16, 2023 and sent to Deposit Money Banks (DMBs) that the domiciliary account withdrawal limit has been increased to $10,000 per day.

Before the new development, the withdrawal limit for the domiciliary accounts was $10,000 per week and reportedly per month depending on the instruction from the apex bank during the suspended Emefiele’s tenure.

The new directive was issued after an extraordinary Bankers’ Committee meeting was held to discuss the implementation and implications of the policy changes for the banking public.

The circular issued by the CBN Director, Banking Supervision Department, Haruna Mustafa, reads: “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.”

However, after the deliberations at the extraordinary Bankers’ Committee meeting, the CBN gave the following directive;

All visible and invisible transactions (medicals, school fees, BTA/PTA, airline and other remittances) are eligible for the Investors’ and Exporters’ (l & E) window.

DMBs shall 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 and unrestricted access to funds in their accounts. Domiciliary account holders are permitted to utilize cash deposits not exceeding USD$ 10,000 per day or its equivalent via telegraphic transfer. DMBs shall provide returns to the CBN including the “purpose” 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/CFT 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 Bank will normalize its CRR maintenance processes and ensure equity in its implementation across the banking industry.