Banks to sell foreign currencies to travellers

There are reports that deposit Money Banks in the country are set to commence the sale of foreign currencies as Personal Travel Allowance and Business Travel Allowance to end-users.

This follows major falls in the naira-dollar exchange rate at the parallel market from 241 to 251 in the past seven days.

Banking sources said the Central Bank of Nigeria and the chief executive officers of the commercial banks had commenced talks to ensure that the DMBs begin the sale of forex in form of the PTA and BTA to members of the public as early as next week.

The CBN had last Wednesday denied over 1,600 Bureaux De Change operators access to the $30,000 limit weekly forex sale after they failed to render returns on the utilisation of previous forex purchased from the CBN window.

The development led to scarcity of forex in international airports across the country, forcing the naira to depreciate against the dollar at the parallel market from between 241 and 243 to 251.

However, the latest move by the CBN in collaboration with the commercial banks is expected to lead to huge supply of dollars to end-users, particularly travellers in the market.

The development is expected to reduce the pressure on the naira occasioned by the scarcity of dollars at the parallel market.

The discussions between the CBN and the banks over the commencement of forex sales is expected to be finalised at a meeting slated for this weekend, according to top baking sources privy to the discussions.

It was also gathered that the central bank had put measures in place to ensure that licensed forex dealers at the airport, particularly Travelex, sell forex to intending travellers.

The Director, Corporate Communications, CBN, Mr. Ibrahim Mu’azu, said the banks were selling forex to legitimate end-users, adding that the central bank had put in place measures that would ensure that “all legitimate needs are met.”