CBN stops cash payment of dollar travel allowances
Payments of Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) can only be paid by authorised dealers via electronic channels, according to a circular released on Thursday by the Central Bank of Nigeria (CBN).
The circular signed by the Director of the Trade and Exchange Department, Dr Hassan Mahmud, said the new measure is to bolster transparency and stability in the foreign exchange market while curbing forex malpractices.
“Memorandum 8 of the Foreign Exchange manual and the circular with reference FMD/DIR/CIR/GEN/08/003 dated February 20, 2017, stipulate the eligibility criteria for accessing Personal and Business Travel allowances (PTA/BTA).
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“In line with the Bank’s commitment to ensure transparency and stability in the foreign exchange market and avoid foreign exchange malpractices, All Authorized Dealer Banks shall henceforth effect payout of PTA/BTA through electronic channels only, including debit or credit cards.
“For the avoidance of doubt, payment of PTA/BTA by cash is no longer permitted.
“Authorized Dealers and the general public are hereby to note and comply accordingly.”
