The Central Bank of Nigeria (CBN) has mandated all authorized banks to cease the physical distribution of funds for Personal Travel Allowance (PTA) and Business Travel Allowance (BTA), signaling a significant policy adjustment in forex transactions.
Under the new directive, banks are required to process these allowances exclusively through electronic means, such as debit or credit cards, in strict adherence to existing regulatory frameworks.
Dr. Hassan Mahmud, Director of the Trade and Exchange Department, has led this initiative to uphold the integrity and stability of the foreign exchange market, aiming to deter illicit forex activities effectively.
Endorsed by Dr. Mahmud, the directive underscores the CBN’s dedication to promoting transparency and stability in forex transactions while combatting fraudulent practices and ensuring compliance with regulatory standards.
This policy shift reflects the CBN’s ongoing commitment to modernizing forex operations, aligning with international standards, and harnessing electronic payment systems for enhanced efficiency and transparency.
By transitioning to electronic processing for PTAs and BTAs, the CBN aims to mitigate the risks associated with cash transactions, reduce the potential for fund misappropriation, and improve the traceability and oversight of forex transactions.
Moreover, this move aligns with broader initiatives to advance financial inclusion and foster the widespread adoption of electronic payment solutions across various sectors of the Nigerian economy.
Banks and financial institutions are urged to promptly implement these changes and facilitate a seamless transition to electronic processing methods for PTAs and BTAs, in full compliance with the CBN’s directive.
This policy adjustment represents a pivotal stride in the CBN’s ongoing efforts to fortify Nigeria’s forex management framework and cultivate a more transparent, efficient, and accountable financial ecosystem.
