There are plans by the Central Bank of Nigeria (CBN) to increase its foreign exchange allocation to banks to boost liquidity and meet customers’ requests, particularly for travel allowances, payment of tuition and medical fees, among other invisibles.
The decision followed a warning by the CBN Governor, Godwin Emefiele, to the Managing Directors of Deposit Money Banks (DMBs) to stop denying customers, access to foreign exchange, particularly for Personal Travel Allowance (PTA), Basic Travel Allowance (BTA), tuition fees, medical payments as well as Small and Medium Enterprises (SMEs) transactions or for the repatriation of Foreign Direct Investment (FDI) proceeds.
Emefiele gave the warning at a meeting with the CEOs at the weekend.
Sources close to the meeting held to discuss the current challenges faced by customers in accessing forex from their banks, said the Governor warned that the CBN would severely sanction any bank which denies customers access to foreign exchange for legitimate purposes.
The sources disclosed that the CBN Management frowned at the seeming difficulty customers experience in accessing foreign exchange through their respective Deposit Money Banks (DMBs), particularly for travels, tuition and healthcare needs.
The sources further hinted of the CBN plans to release several hotlines for aggrieved customers to report banks which fail to sell foreign exchange to them even when they have provided required documentations.
The CBN Acting Director, Corporate Communications Department, Osita Nwanisobi
confirmed the discussions with the bank chiefs on Sunday, and reiterated the apex Bank’s commitment to ensuring liquidity in the foreign exchange market to meet genuine and legitimate demands of customers.
“The CBN agreed to increase the amount allocated to banks for travelers, Small and Medium Enterprises among others.
“The banks also agreed to operate something akin to foreign exchange imprest account such that the coffers of banks will be replenished so long as they retire the initial amounts to the satisfaction of the CBN,” Nwanisobi said.
He urged those seeking to purchase foreign exchange for PTA, BTA, payment of tuition fees or medical fees to approach their respective banks for that purpose.
“We wish to assure members of the public that the CBN shall continue to monitor market developments and is committed to ensuring an efficient FX market for all legitimate users,” he pledged.
He, however, advised customers to approach the customer service representatives of their designated banks if they encounter challenges, advising that they could also escalate complaints to the Central Bank of Nigeria (CBN) via the Bank’s toll-free line: 07002255226 or an email to [email protected] if their requests are not met.
