CBN orders banks to meet forex demands within 48hrs

The Central Bank of Nigeria (CBN) has directed all deposit money banks (DMBs) and all authorized dealers to meet all legitimate forex demand on school fees and medical bills within 48 hours of application.

The CBN gave the directive to all banks in a circular dated 3rd March, 2017 with reference number FMD/DIR/CIR/ GEN/08/006.

The circular signed by Dr. Alvan Ikoku, Director, Financial Markets Department, CBN read: “In order to further increase foreign exchange liquidity in the market and ensure availability to end-users, all banks are hereby directed as follows:

“Open teller points 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 hindrance; all banks must have electronic display boards in all branches, showing rates of all trading currencies; and customers must insist on processing FX transactions based on display rates; banks are mandated to process and meet demand for travel allowances (PTA/ BTA) by end users within 24 hours of such application, as long as the end-users meet basic requirements and banks are mandated process and meet demands for school fees (including allowances) and medical bills within 48 hours of such applications” it said.

It warned that non-compliance will attract sanctions. “Please note that noncompliance with these directives would attract sanctions, including but not limited to being barred from all future CBN foreign exchange interventions” it said.