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The Central Bank of Nigeria (CBN) has instructed all authorised dealer banks to discontinue cash payments for Personal Travel Allowance (PTA) and Business Travel Allowance (BTA).
The new policy aims to improve transparency and stability in the foreign exchange market while preventing malpractices.
The circular also warns banks not to pay out PTA and BTA in dollar cash. The CBN has also increased the International Money Transfer Operator’s (IMTO) license application fee from ₦500k to ₦10m and banned fintechs from offering the service.
The naira’s volatility is attributed to foreign education and healthcare tourism, which were invested in between 2010 and 2020.
The CBN has also reviewed its foreign exchange policies to address foreign exchange challenges and protect the naira.
