FX cash deposit into domiciliary account can only be done by the dom account holder.
The strict rule on FX cash by the CBN means if you travel to the United Kingdom (UK) and urgently need some FX to fund your debit card, you will have to return to Nigeria, buy the dollar, pay into your card and return to the UK to continue your shopping.
The CBN memo said the new guidelines are necessary to review the utilisation of inflows into customers domiciliary accounts.
CBN memo of FX Cash
“Forex inflows cannot be credited to customers until the legitimacy of funds is established,” the document read.
“They can have unfettered access by telegraphic transfers up to a limit of $40,000 monthly for payment of medical bills, school fees, subscription to professional bodies subject to existing CBN guidelines.
“Transfers from one customer to another is prohibited. Transfer within related companies is allowed subject to a limit of $50,000 per month.”
According to a report by TheCable, the CBN memo recommended that proceeds from non-oil exports should be sold to banks, used for repayment of dollar term loans, and self-utilisation for trade transactions for LC, bills and Form A.
The report added that oil export proceeds from E&P companies are to be used to pay contractors and service providers employed by the oil companies in addition to the recommended uses for non-oil FX proceeds.
According to the report, offshore FX inflows, FX inflows from other Nigerian banks and internal account to account FX transfers sourced from offshore inflows are to be used for trade transactions subject to eligibility for E-Form M.
“Upon confirmation of the legitimacy of the inflows, customers can have unfettered access, subject to a maximum of $50,000,” the document read.
“Utilisation for trade transactions subject to processing of eligible trade transactions using E-Form M. Payment for services must be backed with demand note from offshore beneficiary and other regulatory documents.
“Related party transfers are allowed to the maximum of the inflow received. The transfer request should be backed by a signed instruction from the account holder.”
The report added that payment of government fees and levies are also allowed to the maritime, oil and gas, aviation. government parastatals and export processing zones.
Newsone Nigeria understands that the new development is coming at a time the Central Bank of Nigeria has been implementing various policies to conserve Nigeria’s forex after the economy was hit by double shocks caused by the COVID-19 pandemic and lowered oil prices.
Before now, the CBN recently announced that it would no longer provide forex for the importation of maize and is currently investigating some gaming companies for alleged forex infractions.