May 28, 2022

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Forex, Banks to start retail process immediately, CBN orders.

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The Central Bank of Nigeria, CBN, has ordered banks to start with immediate effect processing of retail foreign exchange in all branches of each banks. The processes includes; Business Travel Allowances, Personal Travel Allowances, demand for medical bills and school fees.

The press released titled Update to Foreign Exchange Directives, was made available to all banks and signed by the Financial Market Developments Director, Mr. Alvan Ikoku.

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As posted by Vanguard, the circular read thus, “In view of the CBN’s willingness, capability, and determination to meet FX demand in t.-_he 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:

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“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;”

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“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.”

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“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”

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The question is will this has any positive effect on the value of the Naira in relation to US Dollar and Britain Pounds?

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