Foreign Exchange Crisis: CBN lifts ban on cash deposit of dollars, others

CBN Governor, Godwin Emefiele
CBN Governor, Godwin Emefiele

The Central Bank of Nigeria has lifted a ban stopping commercial banks from accepting cash deposits of foreign exchange from customers.

The CBN governor, Godwin Emefiele, who announced the decision in Abuja on Monday, said the new directive took immediate effect.

Mr. Emefiele said the CBN would henceforth equally discontinue its sales of foreign exchange to Bureau de Change (BDC) operators, accusing them of excessive greed and rent-seeking practices.

The CBN governor explained that the BDC operators would now need to source their foreign exchange from autonomous sources.

He said to ensure that no operator violated the country’s anti-money laundering laws, the CBN would deploy more resources to closely monitor the sources of foreign exchange by the BDCs.

“These measures are not intended to be punitive on anyone or any group,” the CBN governor explained.

“Rather it is meant to ensure that the CBN is better able to carry out its mandate in an effective and efficient manner, to guarantee the preservation of our scarce commonwealth, and that our hard-earned financial system stability remain intact to the benefit of all Nigerians,” he added.

Nigeria has been hit by foreign exchange crisis amid falling oil prices.

Amongst a range of stringent measures to protect the naira and shore up the nation’s forex reserves, the CBN ordered stoppage of cash deposit of foreign currencies and also blocked use of naira debit and credit cards abroad, and transactions requiring payments in foreign currencies.

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  • emmy

    good for them …….i had earlier said it that such policy by CBN on restriction of cash deposit of foreign currency is not sustainable . thank GOD they have decided to have a re-consideration ……..goodnews…

  • Rumournaire

    “…, the CBN … blocked use of naira debit and credit cards
    abroad, and transactions requiring payments in foreign currencies.”

    This is not correct. It was NOT the CBN that blocked use of Naira debit cards abroad. Individual commercial banks did, as they reckoned they would not have the foreign exchange reserves to back up the use. CBN merely said it supported the action of the commercial banks.

    • musa aliyu

      Now will they allow it?

      • Rumournaire

        That is up to the individual bank to decide.

    • Manze

      Thanks @Rumournaire:disqus.. Every Nigeria seem to think it is CBN that blocked the use of Naira Debit cards. It is acually the individual commercial banks decision. And it is not even every commercial bank that took that decision.

  • Joel Adewale

    The CBN of Emiefele? Tufiakwa!

  • musa aliyu

    What is ‘autonomous sources ‘?

  • FreeNigeria

    Can someone please beg Sanusi to come back. This Emefiele is just as bad as Soludo

    • FrankNero ФРАНКЛИНУ Ufomadu

      You must be a stark illiterate.
      Is Emefiele the president who ordered the ban on dollar deposit?
      Go back to school, so you will know it’s the president that formulates economics policy that the CBN governor executes.
      Tell your Daura prince to resign and allow GEJ come back to fix our economy back.

      • JCkid

        Aint gonna happen. If you don’t like Buhari please feel free to hug a transformer.

  • Gugurus Ekpa

    It is amazing that the BDCs were sold dollars to begin with. The sale of dollars to the BDCs suggests that Banks were either incapable or were ineffectual in ensuring that dollars got their consumers.

  • REDEEM

    NIGERIAN MILITARY IS SEEN AS LOSING SUPPORT
    By CLIFFORD D., UK. Published: May 1, 1984 [A MUST READ]

    LAGOS, Nigeria, April 29— Four months after seizing power, Nigeria’s military leaders appear to be suffering an erosion of popular support.
    Last Dec. 31, Maj. Gen. Mohammed Buhari led a group of young officers in a coup against the civilian Government of President Shehu Shagari, saying the takeover was necessary to save Nigeria, Africa’s richest and most populous nation, from economic collapse.

    The military intervention appeared at the time to enjoy enthusiastic support from a broad range of Nigeria’s population.
    Many intellectuals argued that the corruption and incompetence of the Shagari administration had made drastic action both necessary and inevitable. Traders, merchants and people in the streets welcomed the soldiers and looked forward to a quick improvement in their standard of living.

    Growing Disappointment
    Recently, however, there seems to be growing disappointment with both the military Government’s approach and pace.
    ”Since coming to power, this Government has not found a single problem,” said Dr. Olu Onagoruwa, a prominent lawyer and a longtime opponent of the Shagari administration.
    ”But it has managed to alienate the judiciary, the press, labor and students – all the groups that supported it just a few months ago.”
    Critics of the military Government point out that it has yet to present its budget.

    Loan negotiations with the International Monetary Fund continue but Western economists say that Nigeria and the I.M.F. appear to be further apart now than during the final days of the Shagari administration.
    Early indications that General Buhari would agree to devalue Nigeria’s currency, liberalize trade and reduce domestic petroleum subsidies have so far not materialized.

    Prices Have Climbed.
    In addition, prices for food and other essential commodities, which fell in the first weeks after the coup largely because of the presence of soldiers in the marketplaces, have now returned to or exceeded their levels before the coup. Unemployment has been rising, and many of the imported raw materials and spare parts needed to keep factories running have been lacking.

    • Burbank

      1984 news?

      Any news from Jurassic period?

  • Anonymous

    Oooooops! The trial and error by the CBN governor is an absolute snafu. He needs a crash course on economics 101(basic economics).

    • ukoette ibekwe

      Don’t you think that the CBN Governor understands the economics of demand and supply?. He does but like everyone else but due to self service he is not ready to resign his post. Buhari is micromanaging everything. That is why the country is going down the toilet.
      Zimbabwe should be an example for every Nigerian what our country could become under Buhari.

  • aisha ani

    I bet DSS waiting by the bulk room for more Dasukigate beneficiaries to come and collect their dollars. He He He!

  • nokot ezekiel

    does that mean we can now use our credit cards online

  • nnanta

    I have noticed that a lot of us still hold parochial views on subjects the least understand.
    Point 1, CBN & Min of Finance (?) should urgently give a Nigeria a functional Economic plan and not this haphazard policies we are seeing. This who understand monetary policies (Soludo et all) should be called immediately forgetting politics.
    The 2016 budget should reformulated this team that understands micro and macro economics. Enough of playing politics with the lives of Nigerians.