Banks are advising consumers that they can only deposit $5,000 in cash into their accounts monthly, according to emails seen by The Gazette (Nigeria).
Customers were advised to make electronic transfers rather than cash deposits by the banks. Some account holders may no longer be able to make cash deposits, according to one of the banks.
“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.”
Some of these limitations are not new, as they are based on currency transaction guidelines published by the central bank last year as part of its attempts to decrease forex demand and the use of the banking system to promote black market forex transactions.
What does the CBN's Bank Transfer Limit imply?
If you use an electronic transfer, you can deposit more money. For retail forex buyers, this is much more difficult to achieve, and the exchange rate is frequently higher.
Meanwhile, the CBN stated last week that it would continue its Naira 4-dollar scheme for diaspora remittances, which it launched in March, indefinitely, implying that the program was a success by its own criteria.