CBN Scraps Pandemic-Era Dollar Account Curbs as Forex Liquidity Improves

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The Central Bank of Nigeria has dismantled restrictive pandemic-era controls on ordinary domiciliary accounts, signalling a pivot toward liberalisation as forex liquidity improves.

The new policy directive allows Nigerians greater freedom to hold and manage foreign currency accounts, marking a significant departure from the tight restrictions imposed during the COVID-19 pandemic when the CBN sought to conserve foreign exchange reserves.

Under the previous regime, banks were required to obtain CBN approval before allowing customers to operate domiciliary accounts in certain ways, limiting the flexibility of ordinary account holders. The new rules remove these bottlenecks, enabling individuals to freely operate their personal foreign currency accounts.

However, the CBN has simultaneously tightened oversight of export proceeds, ensuring that export earnings are properly channelled through the banking system to boost official forex reserves. This dual approach — freeing personal accounts while tightening export compliance — reflects the CBN’s strategy to deepen the forex market while maintaining transparency.

The policy shift comes as Nigeria’s external reserves have shown improvement, reaching $34.80 billion, providing the central bank with greater room to liberalise the foreign exchange market.

Analysts say the measure is expected to increase dollar inflows into the banking system, improve liquidity in the forex market, and potentially ease pressure on the naira.

Sources: BusinessDay