CBN Pegs Dollar Rate for School Fees, PTA at N375/$
In line with its determination to boost dollar supply in the economy as well as to bridge the wide gap between the interbank foreign exchange (FX) market and the parallel market, the Central Bank of Nigeria (CBN) yesterday pegged the Naira exchange rate for payment of school fees (strictly universities) abroad and Personal Travel Allowance (PTA) at N375 to the dollar, ThisDay reports.
A source said the new rate for school fees and PTA would become effective from Monday. According to the source, the CBN Governor, Mr. Godwin Emefiele, assured that the central bank would provide enough dollars to meet all FX demands for these invisible items.
“For tuition fees, the CBN said it would only cater for those in the universities and the persons involved can only get $15,000 per term and the FX would be wired directly to the school abroad.
We (the banks) were all told to ensure compliance and that heavy sanction awaits any authorised FX dealer that flouts this rule,” the source added. It was also gathered that applicants for FX for tuition fees must have tax clearance certificates and Bank Verification Number.
The move is to drastically reduce FX round-tripping which appears to be one of the factors responsible to the wide gap between the interbank FX market and the parallel market.
On the other hand, for PTA, the source said: “People are entitled to PTA only if their flight(s) is not less than five hours and they are only entitled to $4,000 per quarter.