Central Bank of Nigeria has clarified how domiciliary accounts will be operated in the country.
CBN in a circular to all authorised dealers said domiciliary accounts used to deposit export proceeds (inflow from exports of goods and services from Nigeria) can only be used for business operations’
The directive also allows any extra funds remaining in the domiciliary accounts to be sold in the Investors and Exporters (I&E) Window, suggesting that the CBN is warning exporters not to sell their foreign proceeds in the black market.
This disclosure was made in a circular issued by CBN to all authorised dealers and the general public and signed by its Director for Trade & Exchange Department, Dr O.S. Nnaji.
It read, “These accounts will continue to be operated based on existing regulations which allow account holders use of their funds for business operations only, with any extra funds sold in the Investors & Exporters window.’’
“Where accounts are funded by electronic/wire transfer, account holders will be allowed unfettered and unrestricted use of these funds for eligible transactions. Where accounts are funded by cash lodgements, the existing regulations will continue to apply.”
CBN said it was issuing these clarifications in view of its “vastly improved capabilities of the CBN to monitor transactions, forestall money laundering and prevent the adverse effect of dollarisation in Nigeria’s economy,” which the CBN has frowned upon for years.
CBN’s statement also alluded to the use of BVN in tracking compliance with its guidelines.