CBN Approves Banks’ Use of Idle FX in Domiciliary Accounts
CBN grants approval for banks to access dormant foreign currency in domiciliary accounts. Find out what this means for account holders and the economy.
The Central Bank of Nigeria (CBN) has granted permission for commercial, merchant, and non-interest banks to engage in trading with foreign currencies held in domiciliary accounts that have not been promptly invested, as part of the foreign currency disclosure, deposit, repatriation, and investment scheme.
This initiative is scheduled to commence on November 6, 2024, in accordance with the newly established guidelines from the CBN.
The CBN stipulates that banks must ensure that foreign currency deposits are accessible to participants upon request.
Furthermore, it is mandatory for participating banks to submit monthly reports by the 14th of each subsequent month.
The CBN has also indicated that banks may trade with any uninvested funds, ensuring that these funds remain available to participants when required.
Interest on uninvested balances will adhere to the relevant provisions outlined in the Guide to Charges by Banks and Other Financial Institutions in Nigeria.
Additionally, each participating bank is required to provide monthly returns, following a specified template, detailing the scheme’s operations by the 14th day of the following month.
To enhance transparency and oversight, the CBN has mandated that banks submit comprehensive reports, which should include the total number of participants in the scheme, the cumulative value of Investment Funds Transfer Certificates (ITFC) received during the reporting period and the year, as well as updates on applications and processed transactions.
Peoplesmind
