Home Business CBN Suspends Customer-to-Customer FX Transfer

CBN Suspends Customer-to-Customer FX Transfer

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The Central Bank of Nigeria (CBN) has banned the transfer of Foreign Exchange (FX) from one customer to another.

According to the apex bank, FX cash lodgements into domiciliary accounts can only be done by the account owners henceforth.

An internal memo available in the media space explains that the new guidelines are necessary to review the utilisation of inflows into customers domiciliary accounts.

The circular states: “FX inflows cannot be credited to customers until the legitimacy of funds is established. “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.” It 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.

Also, 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. Offshore FX inflows from other Nigerian banks and internal account to FX transfers sourced from offshore inflows are to be used for trade transactions subject to eligibility for E-Form M.

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