The Central Bank of Nigeria (CBN) is providing direct additional funding to banks to meet the public’s needs as travel, medical and school fees, effective immediately.
This is in continuation of efforts to increase the availability of foreign exchange in order to ease the difficulties encountered by Nigerians in obtaining funds for foreign exchange transactions.
The CBN expects such retail transactions to be settled at a rate not exceeding 20 percent above the interbank market rate of N305 per dollar.
CBN would immediately begin providing foreign exchange to all commercial banks to meet the needs of both personal travel allowances (PTA) and business travel allowances (BTA) for onward sale to customers.
“All banks would receive amounts commensurate with their demand per week, which would be sold to customers who meet usual basic documentary requirements,” the apex bank stated through Isaac Okorafor, Acting Director of Corporate Communications.
In order to further increase the availability of foreign exchange to all end-users, the CBN has decided to significantly reduce the tenor of its forward sales from the current maximum cycle of 180 days, to no more than 60 days from the date of transaction.
CBN said in order to further ease the burden of travelers and ensure that transactions are settled at much more competitive exchange rates, the CBN hereby directs all banks to open foreign exchange retail outlets at major airports as soon as logistics permit.
The central bank reiterated it would neither tolerate unscrupulous actions nor hesitate to bring serious sanctions on offenders, whether banks or their staff.
“The Bank therefore encourages market participants to assist in ensuring that these new measures engender the preservation of our external reserves, stability of our financial system, and growth of our economy to the benefit of all Nigerians.”