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Forex: CBN, Banks to Verify Tax Clearance Certificates, Flight Tickets

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naira
  • Forex: CBN, Banks to Verify Tax Clearance Certificates, Flight Tickets

As part of measures to implement the new foreign exchange measures to address the depreciation of the naira in the parallel market, the Central Bank of Nigeria, CBN, and commercial banks will collaborate with state governments to verify tax clearance certificates.

Meanwhile, economic experts have expressed doubts about the effectiveness of the measures, saying they were inadequate to address the depreciation of the naira in the parallel market.

The CBN,Friday, during a meeting of chief executive of banks, said it would provide dollars to banks to meet demand for Personal Travel Allowance, PTA, and payment of university school fees at N375 per dollar. These will, however, be subject to provision of Bank Verification Number, BVN, and tax clearance certificate.

For payment of school fees, the dollar will be paid directly into the account of the school subject to maximum of $15,000 per session, and minimum age of 18 years. For PTA, the travel destination must not be less than five hours from Nigeria.

The decision followed discussions on how to address the widening gap between the parallel market and interbank market exchange rates, which widened to N210.5 on Friday due to further depreciation of the naira in the parallel market to N516 per dollar.

A source at the meeting said the tax clearance certificate was introduced to ensure that only people with genuine needs for foreign exchange can access the dollars made available for these purposes.

The source said the CBN and the banks also decided to work with state governments to set up tax clearance verification platform, that banks will use to verify the authenticity of tax clearance certificates submitted by end users for dollar purchase.

The source also said this would also be extended to flight tickets. He said though some banks already have flight ticket verification platforms, this will be extended to the whole industry. He said this was to deter the use of fake tax clearance certificates and flight tickets to access dollars for PTA and university school fees.

Experts express doubts

Economic experts are, however, doubtful about the effectiveness of these measures.

Managing Director/Chief Executive, Financial Derivatives Company Limited, Mr. Bismarck Rewane said: “The intention is good but the methodology will lead to more market segmentation, multiple exchange rates and inefficient resource allocation.

“What I will recommend is that the CBN should put in the market whatever dollar it wants to sell without discrimination, and this will lead to efficient allocation of resources and increase in market confidence.”

On his part, Managing Director/Chief Executive, Cowry Asset Management Limited, Mr. Johnson Chukwu, said payment of tax and purchase of foreign exchange were two separate things that should not be combined.

He said every Nigerian is entitled to foreign exchange for PTA and payment of school fees, and hence there should be no discrimination on the basis of tax payment.

In the same way, Mr. Kunle Ezun, a research analyst with Ecobank, said the measures will not have positive impact on the market.

He said what the CBN had just done was to create more problem in the market, by increasing the list of items excluded from the official forex market.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Forex

CBN Cracks Down: Revokes Licenses of 4,173 Bureaux De Change Operators

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Bureau De Change Operator

The Central Bank of Nigeria (CBN) has revoked the operational licenses of 4,173 Bureaux De Change (BDC) operators across the country.

This action comes as the CBN exercises its authority under the Bank and Other Financial Institutions Act (BOFIA) 2020 and the Revised Operational Guidelines for Bureaux De Change 2015.

The affected BDCs failed to adhere to essential regulatory provisions, including the payment of necessary fees for license renewal, timely rendition of returns, and compliance with CBN directives on Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Counter-Proliferation Financing (CPF) regulations.

Sidi Ali, the Acting Director of Corporate Communications at the CBN, explained that the revocation underscores the importance of strict adherence to regulatory guidelines in the financial sector.

The CBN also announced its intent to revise the regulatory and supervisory guidelines for Bureaux De Change operations, with compliance to be mandatory for all stakeholders.

The public has been advised to take note of the regulatory changes and act accordingly.

This crackdown underscores the CBN’s commitment to maintaining the integrity and stability of Nigeria’s financial system through stringent regulatory oversight.

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Naira

Black Market Dollar to Naira Exchange Rate Today, March 1st, 2024

As of March 1st, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,530 NGN in the black market, also referred to as the parallel market or Aboki fx.

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Naira Exchange Rates - Investors King

As of March 1st, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,530 NGN in the black market, also referred to as the parallel market or Aboki fx.

For those engaging in currency transactions in the Lagos Parallel Market (Black Market), buyers purchase a dollar for N1,480 and sell it at N1,470 on Thursday, February 29th, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate declined when compared to today’s rate below.

This black market rate signifies the value at which individuals can trade their dollars for Naira outside the official or regulated exchange channels.

Investors and participants closely monitor these parallel market rates for a more immediate reflection of currency dynamics.

How Much is Dollar to Naira Today in the Black Market?

Kindly be aware that the Central Bank of Nigeria (CBN) does not acknowledge the existence of the parallel market, commonly referred to as the black market.

The CBN has advised individuals seeking to participate in Forex transactions to utilize official banking channels.

Black Market Dollar to Naira Exchange Rate

  • Buying Rate: N1,530
  • Selling Rate: N1,520

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Naira

Black Market Dollar to Naira Exchange Rate Today, February 29th, 2024

As of February 29th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,480 NGN in the black market, also referred to as the parallel market or Aboki fx.

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NAIRA - Investors King

As of February 29th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,480 NGN in the black market, also referred to as the parallel market or Aboki fx.

For those engaging in currency transactions in the Lagos Parallel Market (Black Market), buyers purchase a dollar for N1,600 and sell it at N1,590 on Wednesday, February 28th, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate improved when compared to today’s rate below.

This black market rate signifies the value at which individuals can trade their dollars for Naira outside the official or regulated exchange channels.

Investors and participants closely monitor these parallel market rates for a more immediate reflection of currency dynamics.

How Much is Dollar to Naira Today in the Black Market?

Kindly be aware that the Central Bank of Nigeria (CBN) does not acknowledge the existence of the parallel market, commonly referred to as the black market.

The CBN has advised individuals seeking to participate in Forex transactions to utilize official banking channels.

Black Market Dollar to Naira Exchange Rate

  • Buying Rate: N1,480
  • Selling Rate: N1,470

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