The Central Bank of Nigeria (CBN) has released guidelines for banks to implement a new foreign exchange deposit scheme aimed at integrating dollar bills held outside the formal financial system. This initiative, set to last for nine months, allows Nigerians to deposit foreign currency without fear of penalties or taxes, provided they comply with anti-money laundering laws. The CBN’s guidelines outline the necessary procedures for banks to participate, including the handling of foreign currencies and due diligence requirements to prevent illegal financial activities.
Economic analysts have responded positively to the scheme, noting that it could boost liquidity in Nigeria’s foreign exchange market. According to experts like Rotimi Fakayejo, allowing individuals to bring in their dollars could help reduce reliance on dollar transactions within Nigeria, promoting price stability and potentially alleviating inflationary pressures. Meanwhile, consulting firm Meristem praised the scheme for encouraging transparency and creating opportunities to redirect foreign currency toward productive sectors.
However, some experts voiced concerns over potential challenges, particularly regarding public trust in government policy stability. Economist Marcel Okeke expressed doubt over citizens’ willingness to trust the banking system with their foreign currency due to recent policy inconsistencies. He also cautioned that the program could inadvertently facilitate money laundering if enforcement mechanisms are not robust.
