Monday 06, March 2017 by Georgina Enzer

Nigeria updates its Foreign Exchange Directives

In a press release issued today by Dr Alvan E. Ikoku Director, Financial Markets Department at the Central Bank of Nigeria Corporate Head Office, in view of the Central Bank’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 in the country are now to abide by four key directives.

All Nigeria Banks must now firstly open a teller point for 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; secondly, 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; thirdly, all Nigerian 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 endusers meet basic requirements already outlined in earlier directives; and finally, all Nigerian Banks are mandated to process and meet demands for school fees and medical bills within 48 hours of such application.

According to the press release, the Nigerian Central Bank directive is effective immediately, and non-compliance will attract sanctions, including but not limited to being barred from all future CBN foreign exchange interventions.

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