Hassan Mahmud

In a bid to address liquidity concerns in the Nigerian foreign exchange market, the Central Bank of Nigeria on Wednesday announced measures targeting international oil companies engaged in cash pooling practices. According to a circular addressed to all authorised banks and signed by the Director, Trade and Exchange Department, Hassan Mahmud, the move comes amidst growing concerns over the impact of cash pooling on domestic liquidity. Cash pooling, a common practice among IOCs, involves the transfer of proceeds…

The Central Bank of Nigeria on Wednesday announced that cash payment for Personal and Business Travel allowances (PTA/BTA) would no longer be allowed. The directive was conveyed in a circular addressed to all authorised banks, signed by Hassan Mahmud, the Director of the Trade and Exchange Department. To promote transparency and accountability in the forex market, the CBN directed all banks to process the allowances through electronic channels. “Memorandum 8 of the Foreign Exchange manual and the circular with…

In a move to further liberalize the Nigerian foreign exchange market, the Central Bank of Nigeria on Wednesday lifted exchange rate restrictions for International Money Transfer Operators (IMTOs). The restriction was previously announced in a circular dated 13 September 2023, with reference TED/FEM/PUB/FPC/001/009, announcing a significant shift in the regulation of exchange rates by IMTOs. The circular initially mandated IMTOs to quote rates within an allowable limit of -2.5 percent to +2.5 percent around the…