The Central Bank of Nigeria (CBN) on Sunday said that among other things, all Business Travel Allowances (BTA), Personal Travel Allowances (PTA), international school fees, medical, airline remittances, and other visible and invisible transactions are now eligible for foreign exchange at the Investor and Exporters (I&E) window of the bank.
As part of its resolutions arrived at in its extraordinary Bankers Committee meeting held on Friday, the apex bank stated that all “Deposit Money Banks (DMB) shall ensure expeditious processing of all eligible invisible transactions on behalf of their customers using the applicable rates at the I&E window.
“Cash deposits into domiciliary accounts will not be restricted, subject to DMBs conducting proper KYC…”
The statement signed by Haruna Mustafa, Director, Banking Supervision Department, also made clear the access domiciliary account holders have to their accounts, stating that cash deposits cannot exceed $10,000 per day or its equivalent via telegraphic transfer.
The bank also stated that it will prioritize the orderly settlement of any committed FX forward transactions as they fall due in order to further boost market confidence.
It also stated that it will normalise its CRR maintenance processes and ensure equity in its implementation across the banking industry.
It said that “these policy changes aim to promote transparency, liquity and price discovery in the FX market in order to improve FX supply, discourage speculation, enhance customer confidence and ensure overall stability in the FX market.”
Mustafa advised banks to notify their customers of the current development stating that it will continue to engage stakeholders and issue further guidance as it implements the ongoing reforms in the FX market.