In a bid to boost liquidity in the foreign exchange market, the Central Bank of Nigeria (CBN) has scrapped the issuance of cash for Personal and Basic Travel Allowances.
Instead, it will be paid through electronic channels and no longer by cash.
PTA/BTA is a foreign currency product that ensures customers travelling out of the country on personal or business trips have access to foreign currency at approved CBN rates.
The Director of Trade and Exchange Department at the apex bank, Hassan Mahmud, disclosed this in a circular dated February 14, 2024.
READ ALSO:FX market received $1bn inflow in the past ‘few days’, says Cardoso
It read: “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 Authorised Dealer Banks shall henceforth effect payout of PTA/BTA through electronic channels only, including debit or credit cards.
“The CBN directed all authorised dealers and the general public to note and comply accordingly.”
By Babajide Okeowo