The Central Bank of Nigeria on Wednesday announced the prohibition of sales of foreign currencies directly to travellers in cash.
This is coming at the heels of the current economic inflation of the country hitting 29.9% in January as indicated by the National Bureau of Statistics.
The directive, issued by the Director of Trade and Exchange Department, Hassan Mahmud was conveyed in a circular addressed to all authorized banks, notifying that cash payment for Personal and Business Travel allowances, PTA/BTA, would no longer be allowed. It added that only electronic cards are permissible.
This, according to the circular, aims at promoting transparency and accountability in the forex market.
“Memorandum 8 of the Foreign Exchange manual and the circular with reference FMD/DIR/CIR/GEN/08/003 dated February 20, 2017, stipulate the eligibility criteria for accessing Personal and Business Travel allowances, PTA/BTA.
“In line with the Bank’s commitment to ensure transparency and stability in the foreign exchange market and avoid foreign exchange malpractices, All Authorized Dealer Banks shall henceforth effect payout of PTA/BTA through electronic channels only, including debit or credit cards,” the circular read in parts.
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The CBN urged all authorized dealers and the public to adhere to this directive promptly to facilitate a seamless transition to electronic payouts.
Credible News reports that Nigeria’ inflation rose to 29.90 in January, up from 28.92 last December.
Food prices also rose sharply as January’s food inflation figure peaked at 35.41%.
The Central Bank governor, Olayemi Cardoso has promised to tackle inflation, assuring a fall in the coming days with its planned economic policy.
Meanwhile, the EFCC has raised a special taskforce to check currency abuse and forex malpractices.
In an advertorial, the anti-graft agency listed illegal forex trading, charging fee in foreign currencies, spraying and stamping on Naira at social events, mutilating and defacing the Naira and selling the national currency as punishable offences.
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