Forex

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

Published

7 years ago

February 20, 2017

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.

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Samed Olukoya

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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Naira

Black Market Dollar to Naira Exchange Rate Today 17th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 17th, 2024 stood at 1 USD to ₦1,540.

Published

1 day ago

May 17, 2024

Samed Olukoya

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 17th, 2024 stood at 1 USD to ₦1,540.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,560 and sold it at ₦1,550 on Thursday, May 16th, 2024.

This indicates a slight improvement in the Naira exchange rate when compared to today’s rate.

The black market rate plays a crucial role for investors and participants, offering a real-time reflection of currency dynamics outside official or regulated exchange channels.

Monitoring these rates provides insights into the immediate value of the Naira against the dollar, guiding decision-making processes for individuals and businesses alike.

It’s important to note that while the black market offers valuable insights, the Central Bank of Nigeria (CBN) does not officially recognize its existence.

The CBN advises individuals engaging in forex transactions to utilize official banking channels, emphasizing the importance of compliance with regulatory frameworks.

How much is dollar to naira today in the black market

For those navigating the currency exchange landscape, here are the latest figures for the black market exchange rate:

Buying Rate: ₦1,540
Selling Rate: ₦1,530

As economic conditions continue to evolve, staying informed about currency exchange rates empowers individuals to make informed financial decisions. While the black market provides immediate insights, adherence to regulatory guidelines ensures stability and transparency in forex transactions.

Forex

SEC and ABCON Explore Collaboration for ‘Kolectyomoni’ Digital Currency Platform

Published

1 day ago

May 17, 2024

Samed Olukoya

The Association of Bureaux De Change Operators of Nigeria (ABCON) has initiated talks with the Securities and Exchange Commission (SEC) to explore collaboration on its upcoming digital currency market platform, ‘Kolectyomoni’.

This move was underscored during an official visit by ABCON representatives to the newly appointed Director General of the SEC, Dr. Timi Agama. Aminu Gwadabe, President of ABCON, conveyed the association’s eagerness to engage with SEC to ensure the smooth operation of its digital currency platform.

Gwadabe emphasized that ABCON recognizes the regulatory oversight of SEC in the financial sector and seeks its guidance to navigate the complexities of the digital currency market.

He pointed out that while digital currencies hold immense potential for financial inclusion and innovation, they also present regulatory challenges that require collaborative efforts between industry stakeholders and regulatory bodies.

Highlighting the significance of embracing digital currencies, Gwadabe noted, “The future of BDC’s business is digital currency.”

He stressed the growing adoption of digital currencies among Nigerians, citing statistics that reveal a rising number of participants in the digital currency ecosystem, with a substantial market size of $9 billion annually.

In response, Dr. Timi Agama expressed SEC’s openness to support and facilitate the growth of the digital currency sector in Nigeria.

He acknowledged ABCON’s initiative in launching the ‘Kolectyomoni’ platform and assured of SEC’s cooperation in providing regulatory guidance and oversight.

Agama reaffirmed SEC’s commitment to fostering innovation in the financial sector while ensuring investor protection and market integrity.

He underscored the importance of collaboration between regulators and industry players to develop robust frameworks that foster innovation and safeguard against potential risks.

Furthermore, Agama encouraged ABCON to finalize the development of the ‘Kolectyomoni’ digital currency platform and submit it to the SEC for thorough review and assessment by the technical team.

He emphasized the need for timely regulatory oversight to address emerging trends in the digital currency market and maintain regulatory compliance.

Naira

Black Market Dollar to Naira Exchange Rate Today 16th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 16th, 2024 stood at 1 USD to ₦1,560.

Published

2 days ago

May 16, 2024

Samed Olukoya

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 16th, 2024 stood at 1 USD to ₦1,560.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,530 and sold it at ₦1,520 on Wednesday, May 15th, 2024.

This indicates a decline in the Naira exchange rate compared to the current rate.

The black market rate plays a crucial role for investors and participants, offering a real-time reflection of currency dynamics outside official or regulated exchange channels.

Monitoring these rates provides insights into the immediate value of the Naira against the dollar, guiding decision-making processes for individuals and businesses alike.

It’s important to note that while the black market offers valuable insights, the Central Bank of Nigeria (CBN) does not officially recognize its existence.

The CBN advises individuals engaging in forex transactions to utilize official banking channels, emphasizing the importance of compliance with regulatory frameworks.