The Central Bank of Nigeria (CBN) has introduced new guidelines for Deposit Money Banks (DMBs) regarding the deposit of foreign currency notes.
In a circular issued by Mohammed Solaja, Director of Currency Operations, and posted on the CBN’s website, the bank outlined that each DMB can deposit up to $10 million daily in $100 and $50 notes at CBN branches in Abuja and Lagos.
To enhance the foreign exchange market and boost liquidity, the CBN stated that DMBs may deposit their excess foreign currency at these locations. This move aims to align exchange rates between the parallel and official markets.
Furthermore, the directive specifies that smaller denominations, such as $20 notes and below, are capped at a daily deposit limit of $1 million. Banks must notify the CBN in writing at least three working days before making such deposits.
