GTCO Issues Guidelines For Forex Sales

FOLLOWING recent decision by the Central Bank of Nigeria to take off sell of forex from Bureau de Change operators and hand it over to commercial banks, Guarantee Trust Holding Company (GTCO) has released guidelines for forex trading.

In a letter sent to its customers and obtained by Prime Business Africa, the former Guaranty Trust Bank listed out rules for applying for forex for personal and business travel.

The letter read, “In line with the Central Bank of Nigeria’s policy to improve access to foreign exchange (FX) for legitimate transactions, we are committed to providing you with foreign exchange for your Personal and Business Travel as well as payment for overseas Education, Medical and other eligible invisible transactions. As our valued customer, you have a role to play to ensure the success and integrity of the policy.

“To enable us to serve you better, you are reminded to note the following rules when applying for FX for personal and business travel: FX shall be sold for legitimate travel purpose only: always have a clear intention and legitimate purpose to travel. You are required to provide a valid Nigerian passport and a valid visa to an international destination.

“Only valid travel documents shall be accepted: Your ticket must be to an international destination outside of West Africa and Cameroun. You are required to provide an international return ticket, with a travel date not more than 14 days from the date of PTA/BTA purchase.”

According to the bank, its customers can only apply for PTA/BTA once in a quarter while PTA and BTA requests will be limited to a maximum of $4,000 and $5,000 per quarter per applicant respectively.

For unutilised PTA/BTA, GTCO said customers would be required to return purchased PTA/BTA to the bank within two weeks from the date of purchase if not utilised for the intended purpose or if for any reason the scheduled trip was cancelled.

Read also: CBN Warns Microfinance Banks Against Selling Forex

The bank explained that “application on behalf of a third party is not allowed. FX will only be sold directly to applicants who shall be Nigerians who are 18 years and above and have a valid Bank Verification Number (BVN).”

It added that false application and use of fake documents remained prohibited.

GTCO stated that defaulters of the FX policy may face sanctions that include being barred from accessing FX from the official FX market in the future, restrictions on their bank accounts for such periods as may be determined by the CBN as well as possible criminal prosecution.