In an effort to deepen the foreign exchange market, increase liquidity and achieve convergence in exchange rates, the Central Bank of Nigeria (CBN) has given the green light to Money Deposit Banks (DMB) to deposit their excess foreign currency notes in its branches in Lagos and Abuja .
This approval follows increasing demand for DMBs to deposit their foreign exchange money with the apex bank for further credit to their overseas accounts in correspondent banks.
In a circular issued by Director of Currency Operators, Mohammed Solaja and posted on its website on Friday, the CBN said each bank will be allowed to make a maximum deposit of $10 million in USD 100 notes and USD 50 notes daily at its branches in Abuja and Lagos.
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The circular read: “In order to deepen the foreign exchange market, enhance liquidity and achieve convergence of the parallel and official market exchange rates, the Central Bank of Nigeria (CBN) has approved that DMBs may deposit their excess foreign currency banknotes at the bank’s Lagos and Abuja branches.
“This approval is a response to the increasing demand for DMBs to deposit their foreign currency cash at the CBN for subsequent crediting to their offshore accounts at correspondent banks.”
By: Babajide Okeowo
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