Unic Press UK: The Central Bank of Nigeria (CBN) has issued a press release “New Policy Actions in the Foreign Exchange Market“, disclosing new measures aimed at easing the conundrum in foreign exchange transactions. The new policy entails providing “direct additional funding to banks.”
Highlights of the new measures issued by CBN’s acting director of corporate communications, Isaac Okorafor, included:
- Travel Allowances: The CBN said it would henceforth provide the foreign exchange that all the commercial banks need to meet the demand for personal travel allowances (PTA) and business travel allowances (BTA).
- School and Medical Fees: Foreign exchange would be provided to enable parents, guardians and sponsors to make payments so long as any payments relating to school/medical fees will be remitted by commercial banks directly to the institution specified by the customer.
- .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.” (CBN).
The CBN expects that these retail transactions will be settled at a rate not exceeding 20 percent above the inter-bank market rate.
The official rate is $1=₦305.50. However, as of Monday, the 20 February 2017, the exchange rate in the parallel market in several areas in Lagos, Nigeria, was $1=₦520.
