The Central Bank of Nigeria (CBN) has explained the reason for the new guidelines for depositing foreign currency in commercial banks.
The CBN stated that DMBs may deposit their excess foreign currency at these locations to enhance the foreign exchange market and boost liquidity.
This move aims to align exchange rates between the parallel and official markets.
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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.
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.
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