The Central Bank of Nigeria (CBN) has issued a directive to banks, instructing them to provide customers with unrestricted access to funds held in their domiciliary accounts.

In a press statement titled "CBN Issues Further Guidance on Operational Changes to Foreign Exchange Market," Dr. Isa Abdulmumin, Director of Corporate Communications at the CBN, announced that domiciliary account holders are authorized to utilize cash deposits up to $10,000 per day or its equivalent through telegraphic transfer.

In response to the press statement by the Central Bank of Nigeria (CBN) on June 14, 2023, regarding new guidelines in the foreign exchange market, a special meeting of the Bankers' Committee took place on Friday, June 16, 2023.

The purpose of the meeting was to deliberate on the implementation of these guidelines and their potential impact on the banking public. During the meeting, he stated, "Following the Central Bank of Nigeria (CBN) press statement of June 14, 2023, on new guidelines in the foreign exchange market, an extraordinary Bankers' Committee meeting was held on Friday, June 16, 2023, to discuss its implementation and implications for the banking public."

The objective of these policy adjustments is to foster transparency, liquidity, and price discovery within the foreign exchange (FX) market. The primary goals are to enhance FX supply, discourage speculative activities, bolster customer confidence, and maintain overall stability in the FX market.

"As a result of the discussions held during the meeting, the Central Bank of Nigeria (CBN) has provided further instructions to Deposit Money Banks (DMBs). The guidance states that all visible and invisible transactions, including medical expenses, school fees, BTA/PTA (Business Travel Allowance/Personal Travel Allowance), airline remittances, and other types of remittances, are eligible for participation in the Investors' and Exporters' (I&E) window."

Deposit Money Banks (DMBs) are required to promptly process all eligible invisible transactions on behalf of their customers using the prevailing rate at the Investors' and Exporters' (I&E) window.

Regular domiciliary account holders will have unrestricted access to funds in their accounts. They are allowed to utilize cash deposits up to USD$10,000 per day or its equivalent through telegraphic transfer. DMBs are obligated to submit returns to the CBN, which should include the specified purpose for such transactions.

The bank will establish standard procedures for maintaining Cash Reserve Ratio (CRR) and ensure fairness in its implementation across the banking sector.

According to the statement, the CBN will maintain active communication with stakeholders and provide additional instructions as it progresses with the ongoing reforms.