CBN directs banks to sell forex for medical bills, school fees within 48 hours

The Central Bank of Nigeria (CBN) has directed commercial banks to sell foreign exchange (forex) on medical bills and school fees to customers within 48 hours of filing a demand request.

The Director, Financial Markets Department, Dr Alvan Ikoku in a signed circular to all commercial banks with reference number FMD/DIRlCIRlGEN/08/006, said personal and business travel   allowances (PTA/BTA) to customers should be processed within 24 hours.

He stressed that the new directive has taken effect from Monday and non-compliance will attract sanctions.

He further said the banned is not limited to being barred from all future CBN foreign exchange interventions.

According to the circular signed by Ikoku, “In view of the CBN’s willingness, capability, and determination to meet foreign exchange demand in the market, and in order to further increase foreign exchange availability to all end-users and ensure that a fair and verifiable exchange rate operates in the market, all banks are hereby directed as follows:  “Firstly, open a teller point for retail FX transactions, including buying and selling, in all locations in order to ensure access to foreign exchange by their customers and other users, without any hindrance

“Secondly, all banks must have an electronic display board in all their branches; showing rates of all trading currencies, and customers must insist on processing FX transactions based on the displayed rates

“Thirdly, banks are mandated to process and meet the demand for Travel Allowances (PTA/BTA) by end-users within 24 hours of such application, as long as the end-users meet basic requirements already outlined in earlier directives; and

“Lastly, banks are mandated to process and meet demands for school fees and medical bills within 48 hours of such application.” The circular explained.