The Central Bank of Nigeria (CBN), on Wednesday formally asked deposit money banks to stop accepting foreign currency cash deposit from customers.

Nigerian banks had since last week stopped accepting foreign currencies deposits from their customers who own domiciliary accounts as part of measures to stop currency speculation and halt the decline in the value of the naira.

The measure succeeded in helping to marginally firm up the value of the naira against the dollar earlier in the week as owners of dollars who could not deposit them in banks sell them to Bureau De Change operators.

The CBN had denied that the banks were acting on its order in rejecting the foreign currencies deposit into domiciliary accounts.

But in a circular issued on Wednesday and signed by Olakanmi I. Gbadamosi, Director, Trade and Exchange Department, the apex bank said “it has considered the recent statements by deposit money banks concerning the large volume of foreign currencies in their vaults and their decision to stop accepting foreign currency cash deposit into customers’ domiciliary accounts as a welcome development.”

The apex bank added that as part of its continued efforts to stop illicit financial flows in the nation’s banking industry and also in aligning with the Federal Government anti-money laundering efforts, it was prohibiting immediately, the acceptance of foreign currency cash deposit by DMBs.

The apex bank said “For foreign currency cash lodgements made prior to the date of this circular, the account holder has the option to either withdraw his or her foreign currency cash or the Naira equivalent. For the avoidance of doubt, only wire transfer to and from domiciliary accounts are henceforth permissible.
“The CBN advises individuals that wish to source foreign currency for eligible and legitimate purposes such as BTA, PTA medical, mortgage, school fees, goods etc to do so through recognised channels with the use of Form ‘A’ for “invisible” and Form ‘M’ for “visible” transactions.”