Amidst foreign exchange scarcity, several banks have suspended catering to forex demands from their customers, signaling growing challenges in accessing foreign currency. The situation intensified after the Central Bank of Nigeria implemented a unification of exchange rates in the country.
The unification of exchange rates has led to an increase in forex expenses, prompting a reduction in demand for Personal Travel Allowance (PTA) and Business Travel Allowance (BTA).
Sources within Tier 1 banks revealed that they are grappling with a lack of available dollars, forcing them to halt the issuance of PTA and BTA. This has left numerous pending requests for forex unfulfilled.
Additionally, the unification of exchange rates has aligned selling rates with those observed in the black market. The dwindling supply of forex has contributed to a significant decline in demand for these allowances, even though numerous requests remain pending.
The Central Bank of Nigeria’s move to collapse all forex market segments into the Investors and Exporters (I&E) window aimed to streamline forex transactions. However, this unification has led to challenges in meeting customer demands for forex-related services.
While the I&E market operates on a willing buyer, willing seller model, where parties agree on rates, the scarcity of forex has disrupted these operations. Despite the prevailing market rate, customers are experiencing difficulties accessing forex for crucial transactions.
As Nigeria navigates these forex challenges, the unification of exchange rates and the associated impacts on forex availability remain a significant concern for businesses and individuals alike.