The Central Bank of Nigeria (CBN) has introduced fresh guidelines allowing participants to convert their Internationally Tradable Foreign Currency (ITFC) balances in domiciliary accounts into Naira at any time, based on prevailing exchange rates.
This directive, applicable to commercial, merchant, and non-interest banks (CMNIBs), requires full disclosure of all conversions as part of the banks’ foreign exchange reporting requirements.
CBN’s new guidelines reaffirm its stance on domiciliary accounts, enabling account holders in Nigeria or abroad to trade eligible foreign currencies freely.
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This move follows the 2024 ‘Guidelines on Implementation of the Foreign Currency Disclosure, Deposit, Repatriation, and Investment Scheme,’ derived from the 2023 Executive Order No. 15 for enhanced oversight of foreign exchange assets.
Under the scheme, CMNIBs are tasked with opening dedicated domiciliary accounts, offering unrestricted conversion of ITFC into Naira, and ensuring transparent management of foreign currency. They must gather participant data, including BVN, NIN, and TIN, while observing confidentiality laws.
The guidelines reinforce the CBN’s commitment to a structured regulatory framework, emphasizing compliance with the CBN Act of 2007, BOFIA 2020, and related laws.
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