BANKS LIMIT FOREIGN EXCHANGE SALES AS A RESULT OF THE PINCH.

According to economists, the persistent dollar shortage in the economy is having the worst impact on banks and enterprises.

Nigeria, one of its worst dollar shortages in recent memory, which is impacting important economic sectors.

The economy has reached its breaking point due to a lack of foreign currency.

Investors are finding it challenging to withdraw their money because banks have already stopped honoring card payments. As output second drop in four years, manufacturers cant import crucial raw materials.

Banks have started to limit Personal Travel Allowance and Business Travel Allowance clearance requests to authorized users.

The banks had been approving travelers who applied once every three months prior to this new development.

Findings showed that the persistence of currency scarcity in the banking sector was to blame for the development.

The full Personal Travel Allowance and Business Travel Allowance ($4,000 and $5,000, respectively) will now be disbursed into your FirstBank Travel Card, according to First Bank's email to its customers on “Updates on FX purchase.” Every application will adhere to legal criteria.

Please be sure to send all PTA and BTA applications to the scheduled trip date, together with the approved Form A. There are just two quarters of sales per year.

Access to foreign exchange was a problem, according to Prof. Mike Obadan, a member of the Monetary Policy Committee, in a personal statement made public by the Central Bank of Nigeria following the previous Monetary Policy Committee.

There is no denying that the monetary authority is facing challenges as a result of an excessive demand for foreign currency in the country.

In order to identify the unnecessary components that can be rationalized, a comprehensive assessment of the structure of the forex demand for overseas payments made with invisible funds is necessary in the framework of the country foreign currency management.

In a time of severe forex constraint, several observers questioned why the Bank should give foreign cash to pay primary, secondary, and undergraduate education overseas. It's true that a lot of public schools are very poor.

However, there are a lot of private institutions offering elementary, secondary, and collegiate programs. If parents are ready to pay for international education, it will not be expensive for them to send their kids to the best and most expensive private schools in Nigeria.

Godwin Emefiele, the governor of the CBN, said earlier this year that the bank would discontinue selling foreign currency to deposit money banks by the end of 2022.

2021, it ceased allocating foreign currency to operators of Bureau de Change.

The CBN governor introduced the “RT200 FX Programme” scheme to increase the country's non-oil industry in the next three to five years.

The RT200 FX Programme, according to the official, “is a set of policies, plans, and programmes for non-oil exports that to attain our lofty yet attainable goal of $200 billion in FX repatriation, exclusively from non-oil exports, over the next three to five years.”