On BU$I₦£$$ DIG£$T this morning, June 9, 2021
*The CBN increases allocation of FX to Commercial Banks, assures of liquidity of invisibles*
What are Invisibles?
An exchange in which a service is traded across international borders and money changes hands, but in which no tangible assets are traded. An example of an invisible transaction is a consulting service offered to a client in a different country. Tuition, Medical Expenses, Insurance Premium, the list goes on and on
The Central Bank of Nigeria (CBN) has concluded plans to increase the amount of foreign exchange allocated to banks to meet the requests of customers.
This particularly relates to requests of travellers seeking foreign exchange for travel allowances, payment of tuition and medical fees, among other invisibles.
This followed a warning issued by the CBN Governor, Godwin Emefiele, at a meeting with the Managing Directors of Deposit Money Banks (DMBs).
The CBN cautioned them to desist from denying customers, particularly travellers, the opportunity to purchase foreign exchange.
This is foreign exchange for the purposes of Personal Travel Allowance (PTA), Basic Travel Allowance (BTA), tuition fees, and medical payments, as well as Small and Medium Enterprises (SMEs) transactions or for the repatriation of Foreign Direct Investment (FDI), proceeds.
Customers have faced challenges in accessing FX from their banks, said the Governor warned that the CBN would take action against any bank that denied customers the opportunity to purchase foreign exchange for legitimate purposes.
The question would be do banks really have FX enough to meet the daily demand of customers vis-à-vis the vault limits of the branches of the banks?
_If you learnt anything from this, kindly share with someone out there._
_*Dr. Emmanuel Idenyi Shaibu*_
_animn, ace, f.hcd, f.dss, m.frcn, fimc, cmc, cms, FAiPA, DPA, ACCrFE_
The Millennium Entrepreneur