The Central Bank of Nigeria has ordered commercial banks to stop cash payments of Personal Travel Allowance and Business Travel Allowance in a bid to curb “foreign exchange malpractices.”

“Payment of PTA/BTA by cash is no longer permitted,” the CBN said. “Authorised Dealers and the general public are hereby to note and comply accordingly.”

The apex stated this in a memo addressed to banks dated February 14, signed by its director of foreign exchange and trade department, Hassan Mahmud.

According to the CBN, this directive ensures transparency and prevents “foreign exchange malpractices,” adding that PTA and BTA are to be paid only through debit or credit cards.

“In line with the Bank’s commitment to ensure transparency and stability in the foreign exchange market and avoid foreign exchange malpractices,” the CBN said, “All authorised dealer Banks shall henceforth effect payout of PTA/BTA through electronic channels only, including debit or credit cards.”

Peoples Gazette reported Thursday that the naira dipped to N1,600 against the dollar. 

According to Aboki Forex, the naira plunged to N1,600 per $1. This is despite efforts by the Central Bank of Nigeria to salvage the free fall of the naira.

Though the naira had been on a downward trend against the dollar before Mr Tinubu assumed office last May, the naira’s freefall accelerated following the floating of the currency.

In September, the naira exchanged at N1,000 to one dollar at the parallel market, a historic dip that spotlighted the weakness of Mr Tinubu’s efforts to manage the national currency amid runaway inflation.

In July, the Association of Nigerian Licensed Customs Agents (ANLCA) complained that floating the nation’s currency had caused a drop in vehicle importation in the nation’s ports.

The currency fell to N1,520.123 to a dollar on January 31, according to Naira Rates.