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Central bank clarifies position on operation of domiciliary accounts

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The Central Bank of Nigeria (CBN) says it has not prohibited the acceptance of foreign currency cash deposits by Deposit Money Banks (DMBs).

The CBN Director, Corporate Communications, Mr Issac Okorafor made the clarification while speaking to newsmen in Abuja on Sunday.

A domiciliary account is a type of current account that allows you to fund it with foreign currencies such as dollars, pounds or euros and enables you to do foreign transactions on that account.

The account could be used to transfer money to another country or receive foreign currency from another country.

Okorafor explained that only electronic fund transfers into Domiciliary accounts could also be transferred from such accounts while cash deposits into such accounts could as well allow to be withdrawn in cash also.

He said the clarification was necessary due to misrepresentation of facts and uncertainties surrounding the operations of domiciliary accounts in the country.

Okorafor therefore urged stakeholders and other interested parties in banking sector to always endeavour to seek clarification on issues.

According to him, rumours and speculative tendencies are detrimental to the financial system.

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