Cbn new policy on domiciliary account

The Central Bank of Nigeria (CBN) has introduced a new policy on domiciliary accounts, which aims to promote the use of the naira and reduce the reliance on foreign currencies. Here are the key highlights of the new policy:

  1. Minimum balance requirement: Effective from January 2023, all domiciliary accounts must maintain a minimum balance of $100 or its equivalent in other foreign currencies.
  2. Account maintenance fee: Banks are now allowed to charge a monthly maintenance fee of N10,000 or its equivalent in foreign currencies for accounts that do not meet the minimum balance requirement.
  3. Withdrawal limits: The CBN has introduced withdrawal limits for domiciliary accounts. For accounts with balances below $100,000, the daily withdrawal limit is $1,000 or its equivalent in other foreign currencies. For accounts with balances above $100,000, the daily withdrawal limit is $5,000 or its equivalent in other foreign currencies.
  4. Conversion of foreign currency: The CBN has introduced a new conversion rate for foreign currencies. Banks are now required to convert foreign currencies at the official exchange rate, which is currently N360 to $1.
  5. Restrictions on foreign currency transactions: The CBN has introduced restrictions on foreign currency transactions. For transactions above $10,000, banks are required to obtain prior approval from the CBN.
  6. Reporting requirements: Banks are required to report all foreign currency transactions to the CBN on a daily basis.
  7. Penalties for non-compliance: Banks that fail to comply with the new policy may face penalties, including fines and suspension of their operating licenses.

The CBN has introduced these measures to promote the use of the naira and reduce the reliance on foreign currencies. The policy is aimed at encouraging Nigerians to use the naira for transactions and reducing the country's reliance on foreign currencies.

It's worth noting that the CBN has also introduced a new policy on foreign exchange transactions, which requires all foreign exchange transactions to be conducted through authorized dealers and at the official exchange rate. The policy aims to promote transparency and reduce the use of foreign currencies for illegal activities.