CBN set to punish banks denying forex to travelers
Central Bank of Nigeria (CBN) has warned that any Deposit Money Banks (DMBs) that denies travellers and other foreign exchange (forex) users’ access to dollars will be punished.
Godwin Emefiele, governor, CBN, warned chief executives of the banks to desist from denying customers, particularly travellers, access to foreign exchange for Personal Travel Allowance (PTA), Basic Travel Allowance (BTA), tuition fees and medical payments.
Emefiele also warned that Small and Medium Enterprises (SMEs) must not be denied transactions for the repatriation of Foreign Direct Investment (FDI) proceeds.
The CBN boss said it will be raising the amount of foreign exchange allocated to banks to meet the requests of customers.
Based on the CBN guidelines, a company can buy up to $5,000 BTA per quarter while an individual is entitled to $4,000 PTA per quarter.
The meeting that was held over the challenge faced by customers in accessing forex from their banks quoted the CBN governor to have warned that the apex bank would severely deal with any bank that denied customers the opportunity to purchase foreign exchange for legitimate purposes.
Osita Nwanisobi, acting director, Corporate Communications Department at the CBN, said the apex bank remained committed to ensuring liquidity in the foreign exchange market to meet genuine and legitimate demands of customers.
He said: “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 urged interested members of the public 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 assured.
