According to the apex bank, the IOCs can repatriate 50% of their proceeds in the first instance and then the other half after 90 days.
The CBN said it has observed that proceeds of crude oil exports by IOCs are transferred offshore to fund parent accounts of the IOCs in a phenomenon, it described as “cash pooling”.
This, it said, has an impact on liquidity in the domestic foreign exchange market.
The CBN added: “In line with the ongoing reforms in the foreign exchange market, it has become necessary to take measures to address this trend. Consequently, the CBN hereby directs as follows;
“Banks are allowed to pool cash on behalf of IOCs, subject to a maximum of 50% of the repatriated export proceeds in the first instance;
“The Balance 50% may be repatriated after 90 days from the date of inflow of export proceeds.”
CBN Stops Travel Allowances By Cash
The circular, titled: ‘Allowable Channels For Payout Of Personal Travel Allowance (PTA) And Business Travel Allowance (BTA)’ partly read: “Memorandum 8 of the Foreign Exchange manual and the circular with reference FMD/DIR/CIR/GEN/08/003 dated February 20, 2017, stipulate the eligibility criteria for accessing Personal and Business Travel allowances (PTA/BTA).
“In line with the Bank’s commitment to ensure transparency and stability in the foreign exchange market and avoid foreign exchange malpractices, All Authorised Dealer Banks shall henceforth effect payout of PTA/BTA through electronic channels only. including debit or credit cards.”
The apex regulator directed all authorised dealers and the general public to note and comply accordingly.