Central Bank of Nigeria Clarifies On Operation Of Domiciliary Accounts, Says No Ban On Foreign Currency Cash Deposits

The Central Bank of Nigeria (CBN) has said that it has not prohibited the acceptance of foreign currency cash deposits by Deposit Money Banks.

CBN‘s Director of Corporate Communications, Isaac Okorafor, stated this February 23 in response to the uncertainties surrounding the operations of domiciliary accounts in Nigeria. 

According to him, only electronic fund transfers into domiciliary accounts can be transferred from such accounts while cash deposits into such accounts can only be withdrawn in cash also.

Okorafor therefore urged stakeholders and other interested parties to always endeavour to seek clarification on issues and avoid speculative tendencies which were detrimental to the financial system.

The CBN had on February 13 through the director of trade and exchange, Ms Ozemena Nnaji, said receiving international money transfers in foreign currencies by Nigerians is detrimental to the Naira, stating that;

We have a policy on spending Naira in Nigeria and not dollar because of what that does; it affects the value of our currency when we start spending foreign currency in Nigeria. That is why we say that money that comes in as dollars or Euros should be exchanged and given to the customers in the currency of our country.