Forex guide: What you need to know for your foreign exchange needs

Last week, the Central Bank of Nigeria (CBN) banned the sale of forex to Bureau De Change operators (BDCs).

Governor of the apex bank, Godwin Emiefele, said the N5. 7 billion allocated to BDCs had become unsustainable as $20,000 each is allocated to over 5500 BDCs, amounting to $110million per week.

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He said BDC operators had become a conduit for illegal financial flows.

Emefiele had directed banks to set up dedicated teller points for forex sales.

Nigerians need forex for Personal Travel Allowance (PTA), Business Travel Allowance (BTA), payment of school fees, foreign medical bills, among others.

Below are steps the banks have certified for customers in need of forex:

PTA/BTA purchase:

1. A valid Bank Verification Number (BVN) and confirmation that you are aged 18 years and above.
2. A valid Nigerian passport, visa and return ticket with a departure date of at least 14 days from the date of PTA/BTA request.
3. Travel destination must have a flight time of not less than 5 hours.
4. A properly completed Form A document

International tuition and other school related fees:

1. An admission letter from the study institution.
2. Tuition/fees payment invoice.
3. First degree certificate (for postgraduate students).
4. A properly completed Form A document.

International medical bill payment:

1. A bill from the overseas hospital.
2. A referral by a local doctor to the overseas hospital.
3. A properly completed Form A document.’