The Central Bank of Nigeria (CBN) released two key measures towards stabilizing the Naira. First, a measure of capital control, reducing the allowable transfer of International Oil Companies (IOCs) revenues for repatriation to 50%, holding the remaining 50% for at least 90 days before remittance. This aims to inject more US dollars into the domestic market. Specific documentation requirements ensure transparency and track the funds. Secondly, the CBN banned cash for Personal Travel Allowances (PTA) and Business Travel Allowances (BTA). All allowances must now be issued through debit or credit cards. These moves combat potential misuse and promotes transparency in the FX market for travel purposes. Both measures aim to strengthen the Naira’s value by increasing US dollar availability and preventing illegal currency practices. The CBN emphasizes its commitment to stabilizing the FX market and fostering transparency through these policies.
