The Central Bank of Nigeria, CBN in its bid to strengthen the Naira against other currencies has announced a new forex policy that will stop banks in the country from paying out cash for the Personal Travel Allowance, PTA and Business Travel Allowance, BTA to intending travellers.
In a circular issued by the CBN and signed by the director, export and trade department, Dr. Hassan Mahmud, it stated that ” 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.
For the avoidance of doubt, payment of PTA/BTA by cash is no longer permitted.
Authorized Dealers and the general public are hereby to note and comply accordingly.”
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BACKSTORY: Nigeria have been going through a forex crisis ever since the President Bola Ahmed Tinubu administration floated the Naira against other currency, which inadvertently stopped the government from fixing the exchange rate. This has led to the Naira losing value against other currencies for as high as 100%, and has made the government introduce different policies to control the slide.
DOWNLOAD CIRCULAR: Allowable Channels for Payout of Personal Travel Allowance (PTA) and Business Travel Allowance (BTA)
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