The Central Bank of Nigeria (CBN) has made some clarification on the operations of domiciliary accounts in Nigeria’s money deposit banks. This was made in order to douse the tension raised by the scarcity of Forex and the recent devaluation of the naira by the apex bank.
In the circular released 30 November 2020, the CBN stated that it becomes important following different interpretations on the operationalization of domiciliary accounts and to ensure the stability of the foreign exchange market.
Holders of Export Proceeds Domiciliary Accounts will continue to use their funds for business operations only, they are however still expected to sell extra funds in the CBN Investors & Exporters (I&E) Window.
Individually operated domiciliary accounts owners, which are funded by electronic/wire transfer should be allowed unfettered and unrestricted use of the funds for eligible transactions.