The Central Bank of Nigeria (CBN) has lifted its restrictions on household accounts allowing account holders to withdraw up to $10,000 per day. The CBN announced this in a press release on Sunday after discussing it in a special meeting of the Banking Committee. According to a press release signed by the CBN's Head of Banking, Haruna Mustafa, the meeting was to discuss the implementation and impact of the policy changes on the banking community. This development represents a major change in the country's financial policy, allowing people to exercise greater flexibility in managing their money in household accounts. The new guidelines provide additional guidance to banks for operations in the foreign exchange market. Remember that last Friday published an update on the exchange of services in the Foreign Exchange (FX) market, explaining in detail how it works. The CBN, in an official letter signed by its Chief Marketing Officer, Angela Sere-Ejembi, announced the change in operations in the foreign exchange market. The apex bank also said that the clearing of all sectors and sectors is being consolidated under the I&E window of Investors and Exporters.
With this, the CBN somehow ordered commercial banks to remove the naira cap from the shops of businessmen and exporters. This means that commercial banks can exchange money at any rate at the Investors and Exporters window depending on the agreement between the buyer and the willing seller. Commenting on the cost of the foreign exchange market, the apex bank of Nigeria said that payments for medical expenses, school fees, BTA/PTA and SMEs will continue to be made through deposit banks. He also announced the discontinuation of the RT200 rebate program and the Naira4Dollar investment program, effective June 30, 2023. On Friday, the apex bank through its Twitter account, however, gave an update on the changes made to the foreign exchange (FX) market, explaining how it works. The I&E market operates on a willing buyer, seller system where a company with FX demand seeks another company with FX to sell at a price agreed upon by an authorized dealer. Meanwhile, the sea change in the foreign exchange market is coming as a result of the suspension of Godwin Emefiele as the CBN Governor by President Bola Ahmed Tinubu (BAT). Remember that Tinubu in his inaugural speech as president on the 29th of May promised to unify the foreign exchange market in our country and promote the confidence of businessmen.
“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,” the bank said. “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.” “To collapse all segments in the fx market into the Investors and Exporter’, I & E window means all eligible FX transactions in the market shall only be done via the I&E window, all other windows cease to exist,” the CBN wrote.
