…As PTA gets $4,000 per quarter
23 February 2017, Sweetcrude, Lagos — A financial expert have described the Central Bank of Nigeria, CBN new policy in the foreign exchange market as the right step in the right direction.
Mr Johnson Chukwu, a financial analyst in an interview with Sweetcrude Reports said the new policy is an indication that CBN is using the little resources at its disposal to improve foreign exchange supply in the market, thereby reducing the pressure in the parallel market.
“By improving supply in some segment of the market particularly school fees, Personal Travel Allowance, PTA, and Medical Travel; they will automatically reduce the pressure on the parallel market.
“It will reduce the pressure on the parallel market because these are the people these are the people that will naturally default to the alternative market. But if they have their demand satisfied in the official window, they will not need to go to the parallel market and that will reduce demand in the parallel market.
“If CBN sustained this policy, people who have warehoused their dollar will be forced to bring them out into the market. Any measure that will bring additional foreign exchange into the market is the right step in the right direction,” Mr. Johnson Chukwu said.
Meanwhile, CBN in statement said it shall commence the sales of foreign exchange
on weekly basis to banks classified into merchant banks, small banks, medium banks and big banks for Personal Travel Allowance, PTA and School fees every Tuesday.
According to the statement signed by CBN’s Director Financial Market Department, Dr. Alvan E. Ikoku explained that applicants for PTA shall present verifiable BVN to their bankers and entitled to $4, 000.00 per quarter.
The statement added that for School Fee applicants, remittance shall be made directly to the school’s account and not more than $15, 000.00 or its equivalent per term/semester adding that all banks are expected to comply with the new directive or be sanctioned.
“All banks are expected to submit a daily return of their sale of foreign exchange for PTA and schools fees to the Central Bank of Nigeria. The report must reach the Director, Finance Market Department on or before 4 pm daily in soft and hard copies. The report must indicate name, Amount purchased, Applicable rate USD/NGN, Purpose of purchase, Beneficiary name and Passports number.
“Any bank that fails to comply with this circular shall be sanction,” Dr Ikoku said in the statement.