Nigerian Banks Now Rejecting Dollar Deposits

Commercial banks in the country have suspended the acceptance of cash deposits in dollars.

This was done to curb the large speculation on the currency.

Making this disclosure, the chief executive of First City Monument Bank, Ladi Balogun, said that lenders would, however, continue to receive dollar transfers from other banks.

He said, “Banks no longer accept dollar cash due to large speculation on the currency.”

Also confirming the development, another Nigerian lender, which asked not to be identified told Reuters that, “We are constrained due to the current influx of foreign exchange cash deposits we have been receiving in recent times, and the lack of available FX cash outlets, to stop receiving FX cash deposits,” that bank told Reuters.

Similarly, Guaranty Trust Bank in a message to its customers confirmed the development, it added that currency deposited hitherto would not be eligible for transfer.

The statement reads, “Please be informed that due to the unavailability of outlets for managing foreign currency cash deposits, we have found it necessary to temporarily suspend receipts of foreign currency cash deposits into domiciliary accounts at all our branches nationwide from Monday, 3rd of August 2015.

“In addition, foreign currency cash deposits into domiciliary accounts made prior to this notice will not be eligible for outward electronic transfer and can only be withdrawn as cash.

“Please note that this temporary measure, does not affect electronic transfer of funds into or from your domiciliary accounts and, you will continue to have access to foreign currency cash withdrawals from your account.

“Whilst we have had to take this step to temporarily suspend foreign currency cash deposits, we would like to assure you that we are working hard at finding alternative outlets and a quick solution to this situation.

“Kindly accept our sincere apologies for any inconvenience this might cause. Thank you for banking with us”.

It would be recalled that Central Bank Governor Godwin Emefiele last week said the naira, which had lost around 15 percent against the dollar over the past year, with an official devaluation in November and a de facto one in February, was “appropriately priced” at its current level of 197 to the dollar on the interbank market.