CBN to sanction banks denying customers foreign exchange

The Central Bank of Nigeria has handed down a warning to banks’ chief executive officers to be prepared for heavy sanctions should their banks deny customers and travellers genuine demand for dollars.

CBN Governor Godwin Emefiele cautioned bank CEOs to desist from denying customers access to foreign exchange for Personal Travel Allowance (PTA), Basic Travel Allowance (BTA), tuition fees and medical payments.

He also said the Small and Medium Enterprises must not be denied transactions for the repatriation of Foreign Direct Investment proceeds.

The CBN chief said it would be raising the amount of foreign exchange allocated to banks to meet the requests of customers.

Based on the CBN guidelines, a company can buy up to $5,000 BTA per quarter while an individual is entitled to $4,000 PTA per quarter.

The warning by the CBN governor came at a weekend meeting during his with managing directors of Deposit Money Banks.

Sources at the meeting held over the challenge facing customers in accessing forex from their banks said the Emefiele warned that the CBN would severely deal with any bank that denied customers the opportunity to purchase foreign exchange for legitimate purposes.

This came as the CBN on Sunday announced the increase of foreign exchange (forex) allocations to banks to meet the requests of customers, seeking forex for travel allowances, payment of tuition and medical fees, among other invisibles.

Confirming the discussions at the meeting of bank chiefs, the Acting Director, Corporate Communications Department at the CBN, Mr Osita Nwanisobi, said in a note that the CBN remained committed to ensuring liquidity in the forex market to meet genuine and legitimate demands of customers.

He added, “The CBN agreed to increase the amount allocated to banks for travellers, the Small and Medium Enterprises among others. The banks also agreed to operate something akin to foreign exchange imprest account such that the coffers of banks will be replenished so long as they retire the initial amounts to the satisfaction of the CBN.”

Nwanisobi allayed fears of a forex shortage and urged members of the public seeking to purchase foreign exchange for PTA, BTA, payment of tuition fees or medical fees to do so from their banks.

“We wish to assure members of the public that the CBN shall continue to monitor market developments and is committed to ensuring an efficient FX market for all legitimate users,” he said.

He, however, advised customers to approach their customer service representatives of their designated banks should they encounter challenges.