- This is part of the apex bank measure to stem naira’s depreciation and reduce dollar demand in the country.
The Central Bank of Nigeria (CBN) says it has stopped the payment of personal and business travel allowances (PTA/BTA) by banks in the country.
This is part of the apex bank measure to stem naira’s depreciation and reduce dollar demand in the country.
Although some banks before now had resorted to paying into either domiciliary accounts or foreging currency denominated cards, while many still pay customers in cash.
The latest CBN directive was contained in a circular issued on Thursday to all authorized dealer Banks titled ‘Allowable Channels for Payout of PTA and BTA’
In the circular signed by the Director of Trade and Exchange of the CBN, Dr Hassan Mahmud, CBN stated that the directive takes effect immediately.
It said the move was to check activities of unscrupulous persons who sought to game the system and foster transparency in the foreign exchange market.
The circular stated that “memorandum 8 of th foreing exchange maul 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 foreing exchange malpractices, all authorized dealer banks shall henceforth effect payout of PTA/BTA through electronic channels only including debit aor credit cards.
“For the avoidance o doubt payment of PTA/BTA by cash is no longer permitted. Authorized dealers and the general public are hereby to note and comply accordingly.”