CBN Prohibits Cash Payments for Travel Allowances – Forex

CBN Implements Post No Debit Restriction on Unverified Accounts

The Central Bank of Nigeria (CBN) has introduced new measures regarding Personal and Basic Travel Allowances, mandating that they must be processed solely through electronic channels, disallowing cash transactions.

This move comes amidst the ongoing foreign exchange challenges confronting the nation.

Hassan Mahmud, the Director of the Trade and Exchange Department at the CBN, issued the directive in a circular dated February 14, 2024, which applies to all authorized dealers and the general public.

Entitled ‘Allowable Channels For Payout Of Personal Travel Allowance (PTA) And Business Travel Allowance (BTA)’, the circular emphasizes the importance of adhering to existing guidelines outlined in Memorandum 8 of the Foreign Exchange manual and a previous circular dated February 20, 2017.

The directive states: “In line with the Bank’s commitment to ensure transparency and stability in the foreign exchange market and avoid foreign exchange malpractices, All Authorised Dealer Banks shall henceforth effect payout of PTA/BTA through electronic channels only, including debit or credit cards.”

The objective behind this decision is to promote transparency and stability in the foreign exchange market while curbing potential malpractices.

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