The Central Bank of Nigeria (CBN) has approved the free foreign exchange deposit window, issuing new guidelines for banks to implement the policy. These guidelines released by the CBN outline the procedures for participation, affecting all commercial, merchant, and non-interest banks across the country. The move is expected to streamline foreign exchange deposits and enhance liquidity in the market.
The notice of the scheme guidelines was jointly signed by the acting Director of the Financial Policy and Regulation Department, John Onojah, and the acting Director of the Banking Supervision Department, Dr Adetona Adedeji.
According to the document titled ‘Guidelines on Implementation of the Foreign Currency Disclosure, Deposit, Repatriation and Investment Scheme, 2024,’ banks are at liberty to trade with the foreign exchange made available by the scheme participants.
“Commercial, merchant, and non-interest banks may trade with any deposited ITFC (Internationally Tradable Foreign Currencies) not immediately invested by a participant, provided that the funds would be made available to the participant when needed. Interest payment by CMNIBs on the balance in the designated domiciliary account shall be in line with relevant provisions of the Guide to Charges by Banks and Other Financial Institutions in Nigeria.”
In its latest guidelines, the Central Bank of Nigeria (CBN) has mandated that banks must collect key details from customers, including the Bank Verification Number (BVN) and National Identification Number (for individuals and directors of incorporated entities), or a Tax Identification Number (for legal entities).
Other required information includes the amount of Internationally Tradable Foreign Currency (ITFC) to be deposited, as well as the details of the applicant’s designated domiciliary account into which the ITFC will be credited, along with any additional information that the bank may request periodically. The CBN also emphasized that banks must adhere strictly to anti-money laundering (AML), Combating the Financing of Terrorism (CFT), and Countering Proliferation Financing (CPF) laws and regulations.
As communicated by the CBN, the CMNIBs are not to impose any restriction on the withdrawal from the designated domiciliary account of the participant (individual or business) except as otherwise provided in the scheme guidelines.
