The Central Bank (CBN) has lifted restrictions it placed on Commercial banks which limited the banks’ ability to conduct business transactions in foreign currency (dollar) transfer.
With the latest development, banks can now transfer foreign currency in customers’ domiciliary accounts to their local and international business partners subject to a daily cumulative limit of $10,000.
Sanction will be applied to banks which violate the new rule.
Central Bank of Nigeria (CBN) spokesman, Ibrahim Mu’azu, stated yesterday that the apex bank decided to reverse the policy because its finding showed that currency substitution by customers which made it enforce it in the first place has been tackled.
According to him, bank customers before now were converting naira to dollar and depositing the proceeds in the hope that the dollar would continue to appreciate at the parallel and official markets. He said stability has now returned to the market despite the volatility in the parallel market rate with the naira exchanging for over N300 to one dollar.
The banks are already communicating the new changes to their customers.
The lifting of the over six-month old ban, followed complaints by local and international stakeholders that the restriction was not only killing businesses but had led to diversion of huge forex to neighbouring countries.
The lifting of the Central Bank of Nigeria (CBN’s) ban on dollar deposit transfer is part of the gradual relax of its stringent foreign exchange (forex) policies triggered by sharp drop in crude oil prices and reduced inflow of petrodollars.
It is also in response to International Monetary Fund (IMF) directive that the polices should be relaxed to avoid alienating Nigeria from its international trade partners and calls from small businesses, manufacturing concerns, the International Monetary Fund (IMF), and political leaders.
RipplesNigeria …without borders, without fears