CBN eases restrictions on dollar accounts

As the naira value continues to depreciate at the parallel market, the Central Bank of Nigeria (CBN) has eased restrictions on forex receipts from domiciliary accounts to ease the pressure on the naira.

The naira exchanged for over N500/$1 at the parallel market Monday.

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With the new regulation, beneficiaries of diaspora remittances through International Money Transfer Operators (IMTOs) will henceforth receive such inflows in the foreign currency (US Dollars) through their banks.

The CBN has previously directed that the proceeds be remitted in naira.

But in a circular yesterday by its Director, Trade and Exchange Department, Dr. Ozoemena Nnaji, CBN directed all authorised dealers and the public on the new order.

For export proceeds on Domiciliary accounts, it said: “These accounts will continue to be operated based on existing regulations which allow account holders use their funds for business operations only, with any extra funds sold in the investors’ & exports (I&E) window.”

For ordinary Domiciliary Accounts, it said: “Where accounts are funded by electronic/wire transfer, account holders will be allowed unfettered and unrestricted use of these funds for eligible transactions. Where the accounts are funded by cash lodgements, existing regulation will continue to apply. “

CBN said these clarifications are necessary as it has improved its capabilities to monitor transactions and forestall money laundering. The circular also indicated that BVN will be used to enforce the regulation.