The Central Bank of Nigeria (CBN) has announced the removal of limits placed on domiciliary accounts in a bid to promote transparency and liquidity in the foreign exchange (FX) market. In a statement titled ‘CBN issues further guidance on operational changes to foreign exchange market,’ the CBN outlined the new regulations, granting account holders unrestricted access to funds and the ability to make daily withdrawals of up to $10,000.

Under the new rules, ordinary domiciliary account holders can freely deposit and access funds in their accounts. Cash deposits into domiciliary accounts will not be restricted, provided that banks conduct proper Know Your Customer (KYC) checks and adhere to anti-money laundering and counter-terrorism financing laws.

The move comes after banks had imposed limits on transfers from cash lodgements into domiciliary accounts earlier this year. The CBN’s decision to lift these limits followed discussions at a Bankers’ Committee meeting, aiming to improve transparency, liquidity, and price discovery in the FX market while discouraging speculation.

The statement also clarified that all visible and invisible transactions, such as medicals, school fees, travel allowances, remittances, and others, were eligible for the Investors’ and Exporters’ window. Banks were urged to process eligible invisible transactions promptly using the applicable rate at the I&E window.

DSS recovers 18 bags of currency, documents from Emefiele’s Lagos residence

DSS Seizes 18 Bags of Money and Documents from Emefiele’s Residence

Operatives of the Department of State Services (DSS) have reportedly taken away 18 Ghana-must-go bags containing money and documents from the Lagos residence of the suspended governor of the Central Bank of Nigeria (CBN), Godwin Emefiele. The search of Emefiele’s property lasted for about a day before the bags were confiscated on Friday afternoon.

Emefiele, who has been in DSS custody for eight days since his arrest on June 10, may remain in custody for a longer period as investigations into his activities as the head of the CBN are still ongoing. The DSS obtained a court order on Thursday to detain him for three weeks, and there are indications that his detention could be extended.

After being taken from the DSS custody in Abuja, Emefiele was flown to Lagos, where his house was searched. The 18 bags filled with currency and documents were seized during the search and were transported back to Abuja along with Emefiele on Friday afternoon. Investigators have resumed questioning Emefiele based on the findings.

The DSS is also reportedly searching for Emefiele’s personal assistant, who is believed to hold crucial information about the former CBN governor’s assets and wealth. The assistant is currently on the run, and the DSS considers him a key figure in unraveling Emefiele’s financial activities within and outside the country.

Emefiele was suspended as CBN governor by President Bola Tinubu on June 9, who also ordered an investigation into his actions. Subsequently, the DSS arrested Emefiele for further investigation.

CBN Officially Devalues Naira: New Exchange Rate Introduced by CBN

The Central Bank of Nigeria (CBN) has officially devalued the naira by updating the naira-to-dollar exchange rate on its website. The previous rate of N463 per dollar has been replaced with N632.77 per dollar, effective from June 14, 2023, for transactions through the Investors and Exporters (I&E) window. This decision reflects the CBN’s acknowledgement of economic realities and the need to align the naira’s value with international currency markets, impacting various sectors and foreign investors.

The CBN has also updated exchange rates for other major currencies, such as the British pound and the euro. In a circular, the CBN introduced a “willing buyer, willing seller” arrangement at the I&E window, aiming to enhance liquidity and improve the functionality of the foreign exchange market.

This move represents a step towards unifying exchange rates in Nigeria and creating a transparent and market-driven foreign exchange system. The CBN’s decision reinforces its commitment to streamline foreign exchange transactions and promote stability in the Nigerian economy.

Overall, the CBN’s official devaluation and introduction of a new exchange rate aim to align the naira’s value, enhance the foreign exchange market’s efficiency, and attract foreign investments for economic growth in Nigeria.

Full list of Allegations against CBN Governor Godwin Emefiele emerges

Emerging Allegations Against Suspended CBN Governor Godwin Emefiele

A new list of allegations has come to light regarding Godwin Emefiele, the suspended governor of the Central Bank of Nigeria (CBN). President Bola Ahmed Tinubu made the decision to suspend Emefiele from his position on June 9, and fresh details have surfaced regarding the accusations against him.

According to reports from The Punch, Emefiele, along with his aides and other high-ranking officials, will face questioning concerning several allegations. These include granting loans worth billions of naira to farmers under the Fadama scheme, the controversial sale of Polaris Bank, alleged financing of the Indigenous People of Biafra (IPOB), and allegations related to forex fraud.

Sources within the Department of State Services (DSS) have disclosed that a team of proficient interrogators has been assembled to question Emefiele. The DSS is investigating alleged involvement in financing terrorism, mismanagement of the CBN and the economy, and the naira redesign policy, among other matters. The DSS is considering obtaining a court order to detain Emefiele, allowing for unrestricted interrogation.

According to information from security sources reported by Leadership newspaper, Emefiele is expected to face charges in court the following week. The sources indicate a contentious dispute between Emefiele and the DSS over allegations of terrorism financing, fraudulent activities, and economic crimes that could impact national security. There are also claims of mismanagement concerning the CBN subsidiary, NISRAL, and the Anchor Borrowers Programme.

Suspense In Black Market As CBN Orders Nigeria Banks To Freely Buy and Sell Dollars

Suspense in Black Market as CBN Allows Banks to freely Trade Dollars

Reports suggest that the Central Bank of Nigeria (CBN) has instructed banks to engage in foreign exchange trading within the Investors & Exporters (I&E) window at any exchange rate agreed upon by willing buyers and sellers. This directive has created uncertainty in the unofficial naira black market for dollars. The I&E window exchange rate has already surged to N610 per dollar as of Wednesday afternoon, compared to N471.67 the previous night.

Although the CBN has not officially commented on the matter, two banking executives have confirmed the directive. This move comes amidst recent controversies after a major newspaper reported that the CBN was considering naira devaluation, potentially allowing the exchange rate to rise to N750.

According to Nnamdi Nwizu, an investment banker and Co-founder of Comercio Partners, the immediate consequences of this directive will likely be an increased inflow of foreign exchange into the economy and a further rise in the inflation rate. The aggressive rise in the I&E window exchange rate poses a significant challenge to the naira black market for dollars, which has been an alternative market for Nigerians seeking foreign exchange.

While the CBN’s directive may not completely eliminate the naira black market or other foreign exchange platforms, it is expected to have some impact. Babajide Komolafe, Vanguard Economy Editor, explained that the increased flow of foreign exchange to banks would boost confidence among individuals looking to transact, as they can now buy or sell dollars at similar rates to those in the parallel or black market. However, Komolafe emphasized that similar measures have been implemented in the past without eradicating the black market entirely.

A black market operator in Lagos confirmed that the CBN’s move has not yet directly affected the exchange rate, with the dollar still trading at N762 on Wednesday afternoon. However, they expressed suspense regarding the potential implications of the directive.

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