• Home
  • Anti-Corruption
  • Fact-Check
  • Economy
  • National
  • Security
  • Features
  • State
  • Event
  • E-Book
Search
  • Home
  • About
  • Adverts
  • Contact
Sign in
Welcome! Log into your account
Forgot your password? Get help
Password recovery
Recover your password
A password will be e-mailed to you.
PRNIGERIA PRNigeria News
PRNIGERIA PRNIGERIA
  • Home
  • Anti-Corruption
  • Fact-Check
  • Economy
  • National
  • Security
  • Features
  • State
  • Event
  • E-Book
Home Economy CBN Releases New Forex Policy Actions
  • Economy
  • National

CBN Releases New Forex Policy Actions

By
Isaac Okorafor
-
February 20, 2017

In continuation of efforts to increase the availability of Foreign Exchange in order to ease the difficulties encountered by Nigerians in obtaining funds for Foreign Exchange transactions, the Central Bank of Nigeria (CBN) is providing direct additional funding to banks to meet the needs of Nigerians for Personal and Business Travel, Medical needs, and School fees, effective immediately. The CBN expects such retail transactions to be settled at a rate not exceeding 20 percent above the interbank market rate.

A. Travel Allowances
Having cleared the historic backlog of matured letters of credit at the inception of the current flexible exchange rate system, the CBN would immediately begin to provide foreign exchange to all commercial banks to meet the needs of both personal travel allowances (PTA) and business travel allowances (BTA) for onward sale to customers. All banks would receive amounts commensurate with their demand per week, which would be sold to customers who meet usual basic documentary requirements.

B. School and Medical Fees
Similarly, the CBN would meet the needs of parents, guardians and sponsors who are seeking to make payments of school and educational fees for their children and wards. Such payments must be made by commercial banks directly to the institution specified by the customer. The CBN would ensure that this process is as smooth as possible and that as many customers as possible get the foreign exchange they genuinely demand. This would also apply to customers seeking to make payments, or purchase foreign exchange, for medical bills and paid directly to hospitals. The supply of FX to retail end-users (PTA, BTA, School fees, medical bills, etc) would be sustained by the CBN.

Read Also:

  • Finally, Tinubu’s Embattled Minister Resigns Amid Certificate Scandal
  • Tinubu Confers National Honour on Outgoing INEC Chairman Mahmood Yakubu
  • Army Partners Media to Tackle Fake News, Boost National Security

C. Forward Sales Tenor
In order to further increase the availability of foreign exchange to all end-users, the CBN has decided to significantly reduce the tenor of its forward sales from the current maximum cycle of 180 days, to no more than 60 days from the date of transaction.

D. FX Sales at Major Airports
In order to further ease the burden of travellers and ensure that transactions are settled at much more competitive exchange rates, the CBN hereby directs all banks to open FX retail outlets at major airports as soon as logistics permit.

E. Increase Efficiency of FX Market
In order to maintain confidence in the FX market, the CBN will immediately take the following steps:
a. Begin implementing its articulated program to clear all the unfilled orders in the interbank FX market;
b. Given our plan to meet all unfilled orders, and while provision of FX to the manufacturing sector would remain the CBN’s strong priority, we will no longer impose allocation/utilization rules on commercial banks;
c. Implement an effective intervention programme to support the inter-bank market to ensure adequate liquidity necessary to deliver an efficient FX market;
d. Advise FMDQ to activate its FX Order-Book systems as soon as possible and also accelerate the on-boarding of FX clients on the FX Relationship Systems to ensure total transparency of the FX market.

Given the CBN’s objective to continuously and vigorously pursue a transparent, liquid, and efficient FX Market, the Bank reiterates it would neither tolerate unscrupulous actions nor hesitate to bring serious sanctions on offenders, be they banks or their staff. The Bank therefore encourages market participants to assist in ensuring that these new measures engender the preservation of our external reserves, stability of our financial system, and growth of our economy to the benefit of all Nigerians.

Isaac Okorafor
Ag. Director, Corporate Communications

VISIT OUR OTHER WEBSITES
PRNigeria.com EconomicConfidential.com PRNigeria.com/Hausa/
EmergencyDigest.com PoliticsDigest.ng TechDigest.ng
HealthDigest.ng SpokesPersonsdigest.com TeensDigest.ng
ArewaAgenda.com Hausa.ArewaAgenda.com YAShuaib.com
  • TAGS
  • CBN
  • Foreign Exchange
  • PTA
Previous articleNiger Probes N4.4bn Bail Out Funds to LGAs
Next articleNo N250m provision for VP’s Gate-house in 2017 Budget
Isaac Okorafor
Isaac Okorafor
https://prnigeria.com
PRNigeria is the pioneer Press Release Distribution agency in Nigeria. A member of image Merchant Promotions limited, PRNigeria encourages individuals and organisations to be more transparent in their information management. with dedicated Editorial staffs, the PRNigeria ensures that information provided on its platforms are timely, factual and authoritative Read more at: //prnigeria.com/about/
Facebook Twitter

RELATED ARTICLESMORE FROM AUTHOR

Finally, Tinubu’s Embattled Minister Resigns Amid Certificate Scandal

INEC boss Mahmood Yakubu

Tinubu Confers National Honour on Outgoing INEC Chairman Mahmood Yakubu

JUST IN: INEC Boss Prof. Yakubu Hands Over Leadership to Acting Chair

Christian Association of Nigeria CAN

CAN Refutes ‘Christian Genocide’ Claims, Says Violence in Nigeria Affects All Faiths

Pantami Foundation Graduates 250 Gombe Youths in Tech, Entrepreneurship

Tinubu Orders NAHCON to Reduce 2026 Hajj Fares

Hajj Exercise Around Ka'abah

Group Urges CBN to Scrap 2% Service Charge on Hajj Fare to Reduce Pilgrimage Cost

NDLEA Logo

NDLEA Dismantles Cocaine Cartels Behind UK Shipments, Arrests Suspects, Destroys 25,000kg Skunk Nationwide

ACF

ACF Warns of Alleged Plot to Cripple Dangote Refinery, Urges FG Intervention

GWA Award Winners 2025

PHOTOS: Nigeria Customs, IMPR Bag Back-to-Back Golden World Award at IPRA 70th Anniversary

Troops Nab Terrorists’ Logistics, Drug Suppliers in Borno

S/Arabia-Trained Graduates to Begin Forum on Sustainable Development

LEAVE A REPLY Cancel reply

Log in to leave a comment

Recent Posts

  • Finally, Tinubu’s Embattled Minister Resigns Amid Certificate Scandal
  • Tinubu Confers National Honour on Outgoing INEC Chairman Mahmood Yakubu
  • Army Partners Media to Tackle Fake News, Boost National Security
  • Badaru Hails NAF’s Vision, Commissions New Headquarters Annex in Abuja
  • JUST IN: INEC Boss Prof. Yakubu Hands Over Leadership to Acting Chair
  • Home
  • About
  • Adverts
  • Contact
© 2020 PRNigeria. All Rights Reserved.
Latest News
Finally, Tinubu's Embattled Minister Resigns Amid Certificate ScandalTinubu Confers National Honour on Outgoing INEC Chairman Mahmood YakubuArmy Partners Media to Tackle Fake News, Boost National SecurityBadaru Hails NAF’s Vision, Commissions New Headquarters Annex in AbujaJUST IN: INEC Boss Prof. Yakubu Hands Over Leadership to Acting ChairTroops Repel Terrorists Attacks in Borno, Launch Rescue Operation for Abducted VillagersCAN Refutes ‘Christian Genocide’ Claims, Says Violence in Nigeria Affects All FaithsAlleged Certificate Forgery: Why Uche Nnaji Must Resign or Get Fired ImmediatelyPantami Foundation Graduates 250 Gombe Youths in Tech, EntrepreneurshipTinubu Orders NAHCON to Reduce 2026 Hajj FaresSecurity Operatives Nab Influencers Over Defamatory Campaign Against Senator Shehu BubaArmy Dislodges Bandits in Taraba Forests Under Operation Lafiya NakowaHow Irabor's Book Launch Became National Security Summit as Obasanjo, Jonathan, Kukah, Sultan Spoke on Boko HaramNigerian Army Denies Losing Weapons to Bandits in Kwara OperationUba Sani Releases ₦2.3bn for Retirees and Families of Deceased Workers
X whatsapp