CBN unveils new FX guidelines, approves cash movement of $50,000

By Emma Ujah,  Abuja Bureau Chief

The Central Bank of Nigeria (CBN) has issued fresh Foreign Exchange Guidelines which provides that an individual can move cash of up to $50,000, but must be declared at the point of exit.

The bank also retained the earlier provision for the movement or import of cash of up to $10,000 without having to declare it.

A document cited by Vanguard stated, “The following may be exported from Nigeria: Without declaration, foreign currency, either in cash or any other credit instruments not exceeding $10,000.00 or its equivalent in other foreign currencies.

“Any amount in excess of $10,000.00 but not more than $50,000.00 or its equivalent in other foreign currencies, provided the whole amount is declared at the point of exit.

“Any amount above $50,000.00 or its equivalent in other foreign currency, subject to evidence of transaction/procurement through an Authorised Dealer.

“Foreign currency, drafts, etc, brought into the country less expenses incurred, except foreign currency held as a ship or aircraft fund.

“Foreign currency, either in cash or any other credit instrument, not exceeding $10,000.00 or its equivalent in other foreign currencies, may be imported into Nigeria by a person without declaration.

“However, any amount above US$10,000.00 or its equivalent in other foreign currencies shall be declared at the  point of entry.”

It provides that Authorised Dealer Banks can import foreign currency to meet their local cash needs, subject to prior approval of the CBN.

The guidelines says   all inbound FX transfers to Nigeria shall be disbursed to beneficiaries’ bank accounts in Naira or any currency   as may be determined by the CBN from time to time.

The document further stated: “Maximum allowable cash withdrawal for inbound mon-ey transfer shall not be more than the Naira equivalent of USD200.00, and any amount in excess of USD200   shall be paid through an account.

“All IMTOs shall open Naira settlement accounts and ensure that all transactions are routed strictly through their designated settlement accounts, maintained with Authorised Dealer Banks in Nigeria.

“Authorised Dealers and Buyers may purchase foreign currency from individuals visiting Nigeria. At the time of their departure, such visitors may exchange the unutilized balance of Nigerian currency for foreign currency, provided there is evidence of initial conversion.

“Such an exchange is limited to the amount converted at entry if done through an  Authorised Dealer, while an Authorised Buyer can exchange the unutilised balance of the converted amount.”

Source: Vanguard News