“Don’t deposit more than $5k monthly” – Banks inform customers

Some commercial banks in the country are reportedly informing their customers that they can only deposit $5,000 in cash into their foreign currency accounts monthly.

According to reports, some commercial banks have started sending new transfer limits to their customers via e-mail messages.

“There is a $5,000 monthly cash deposit limit. We encourage you to make more deposits via electronic transfers. Cash-funded transfers to beneficiaries with accounts in other banks in Nigeria are no longer allowed.

“There will be no restriction to the frequency or value of transactions for accounts funded through inflows, but supporting documents are required before payments are processed. Cash deposits are no longer allowed for Wealth Management Investments.”, the e-mail stated.

They also advised the customers to transfer electronically instead of cash deposits. One of the banks also reportedly indicated that cash deposits are no longer allowed for some account holders.

Some of these rules are actually not new as they contain forex transaction guidelines issued by the Central Bank of Nigeria (CBN) last year, as part of its efforts to curtail demand for forex and reduce the utilisation of the banking system to facilitate black market dealing in forex.

Observers have said that what this bank transfer limit means is that commercial bank customers cannot deposit more than $5,000 cash monthly (cumulative) into their bank domiciliary accounts.
However, one can deposit more than this if it is an electronic transfer. This, they said, is a lot more difficult to achieve for retail buyers of forex and the exchange rate is often higher.

Bank customers are also required to provide supporting documents backing the inflow of dollars into one’s account, especially if the transfers are from one personal account to another.

Recall that last week, the CBN announced it was indefinitely extending its Naira 4-dollar scheme for diaspora remittances which was introduced in March, suggesting the program may have achieved success by its standards.

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