The apex bank has given a stringent financial order to commercial banks concerning the handling of forex requests.
CBN governor, Godwin Emefiele
The Central Bank of Nigeria (CBN) yesterday ordered banks to process foreign exchange demand for Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) in all their branches within 24 hours.
The CBN gave this order in a circular to all banks signed by the Director, Financial Markets Developments, Mr. Alvan Ikoku. Titled, “Update to Foreign Exchange Directives”, the circular stated: “In view of the CBN’s willingness, capability, and determination to meet FX demand in the market, and in order to further increase foreign exchange availability to all end-users and ensure that a fair and verifiable exchange rate operates in the market, all banks are hereby directed as follows:
“Open a teller point for all retail FX transactions, including buying and selling, in all locations in order to ensure access to foreign exchange by their customers and other users, without any hindrance;
“All banks must have an electronic display board in all their branches, showing rates of all trading currencies, and customers must insist on processing FX transactions based on the displayed rates;
“Banks are mandated to process and meet the demand for travel allowances (PTA/BTA) by end-users within 24 hours of such application, as long as the end-users meet basic requirements already outlined in earlier directives; and banks are mandated to process and meet demands for school fees and medical bills within 48 hours of such application.
“Please note that this directive is effective immediately and non-compliance would attract sanctions including but not limited to being barred from all future CBN exchange intervention”.
In another development, the CBN has accused Other Financial Institutions (OFIS), namely microfinance banks, mortgage banks and envelopment financial institutions, of disregarding recommendations of examination reports.
This accusation was contained in letter to all other financial institutions by the Director, Other Financial Institutions Supervision Department, CBN, Mrs. Tokunbo Martins.