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CBN says only account holders can deposit FX cash into domiciliary accounts – here’s why

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The Central Bank of Nigeria says forex cash lodgements into domiciliary accounts can only be done by the account owners.

According to an internal memo Exclusively seen by TheCable, the memo said the new guidelines are necessary to review the utilisation of inflows into customers domiciliary accounts.

“Forex inflows cannot be credited to customers until the legitimacy of funds is established,” the document read.

“They can have unfettered access by telegraphic transfers up to a limit of $40,000 monthly for payment of medical bills, school fees, subscription to professional bodies subject to existing CBN guidelines.

“Transfers from one customer to another is prohibited. Transfer within related companies is allowed subject to a limit of $50,000 per month.”

It recommended that proceeds from non-oil exports should be sold to banks, used for repayment of dollar term loans, and self-utilisation for trade transactions for LC, bills and Form A.

“They can have unfettered access by telegraphic transfers up to a limit of $40,000 monthly for payment of medical bills, school fees, subscription to professional bodies subject to existing CBN guidelines.

“Transfers from one customer to another is prohibited. Transfer within related companies is allowed subject to a limit of $50,000 per month.”

It recommended that proceeds from non-oil exports should be sold to banks, used for repayment of dollar term loans, and self-utilisation for trade transactions for LC, bills and Form A.

“Related party transfers are allowed to the maximum of the inflow received. The transfer request should be backed by a signed instruction from the account holder.”

Payment of government fees and levies are also allowed to the maritime, oil and gas, aviation. government parastatals and export processing zones.

The Central Bank of Nigeria has been implementing various policies to conserve Nigeria’s forex after the economy was hit by double shocks caused by the COVID-19 pandemic and lowered oil prices.

The CBN recently announced that it would no longer provide forex for the importation of maize and is currently investigating some gaming companies for alleged forex infractions.

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