Unprecedented Deposits Forces Standard Chartered To Reject Foreign Exchange Cash Deposits

SAN FRANCISCO, July 30, (THEWILL) – Standard Chartered Bank, one of Nigeria's most liberal banks in terms of handling customers' foreign exchange dealings has told customers it would no longer accept foreign exchange deposits in cash due to an unprecedented influx of cash deposits by customers.

In a note to its customers obtained by THEWILL, the bank said it would stop receiving FX cash deposits from Tuesday, 11th August 2015, “until the situation improves.”

“We are constrained due to the current influx of foreign exchange (FX) cash deposits we have been receiving in recent times, and the lack of available FX cash outlets, to stop receiving FX cash deposits,” the bank said, adding, “However, the Bank will continue to receive, into your domiciliary account, your inward FX telegraphic transfers from other banks. You will also continue to have access to funds in your domiciliary accounts.”

A senior banker told THEWILL that the bank doesn't have where to store the excess cash deposits. “They have run out of room for the excess cash. No bank wants to pay premium on a non earning asset,” the source said.

The naira has taken a big hit in the parallel market exchanging at almost N250 -$1 from N160 about a year ago. Financial analysts and the central bank have blamed the weakening of the naira at the parallel market on speculators and corrupt members of the previous administration seeking to stash their loot abroad.