We did not reduce foreign exchange rate for pilgrims

We did not reduce foreign exchange rate for pilgrims - CBN

The Central Bank of Nigeria (CBN) has debunked claims in certain quarters suggesting that prospective pilgrims have been granted concessionary foreign exchange rate for the 2016 pilgrimage.

This is contained in a statement in Abuja on Tuesday by the bank's acting Director of Communications, Mr Isaac Okorafor.

According to the statement, the CBN Governor, Mr Godwin Emefiele, said there was no preferential exchange rate of any sort to intending pilgrims.

He clarified that laid down procedure was followed in arriving at the exchange rate for the pilgrims.

“What is obtainable is that every year, prior to the commencement of the pilgrimage, the commission, both Christian and Muslims, approach the CBN to agree on the exchange rate for the personal travel allowance (PTA) for that particular year.

"In this case is between 750 dollars and 1,000 dollars per pilgrim,” he said.

He further explained that the agreement to sell foreign exchange to the pilgrims at the rate of N197 to the Dollar was reached as far back as April 2016 at the prevailing rate then.

According to the CBN Governor, this particular agreement is applicable to both intending Christian and Muslim pilgrims.

He said afterwards, the pilgrims would go ahead to make commitment by way of advanced payment through their various states pilgrims’ welfare boards for onward transmission to National Hajj Commission or Christian Pilgrims Commission as the case might be.

“In this particular case, the market rate prevailed.

" Hence, with the commencement of the flexible exchange rate policy, market determined rates would continue to serve as the bases for foreign exchange for pilgrimage or any form of PTA in the country,” he said.

While likening the request for PTA for pilgrimage of tourism as a valid transaction, Mr Emefiele said that the CBN as a responsible organisation could not renege on agreements or contracts entered into for whatever business transactions.

He therefore appealed to members of the public to exercise restraint in their comments in order not to cause unnecessary and avoidable disaffection among the public.

Join our BBM channel for instant updates : C0030863D

Comments

BOOM: Nigeria’s External Reserves Drops To Lowest In 11 Years

Nigeria’s foreign exchange reserve fell to $25,780,765,483 (25.78 billion) as of August 16, the lowest we have seen since 2005. The drop was down 2.11% from a month ago. The Nations external reserves dropped below $26 billion for the first time on the 5th of August 2016 after it closed at about $25,971,610,949. In fact, the external reserves has dropped by about $480 million dollars in August alone compared to just $100 million in the whole of July. Ironically, the current balance of $25.9 billion is worth about 80% more than what it was in Naira following the depreciation of the naira after it was floated. The CBN has in the past few days ramped up sales of dollars at the interbank in the hope that it will create liquidity in a market that is yawning gape to swallow forex after nearly almost two years of intense rationing by the CBN. The Naira weakened to its lowest ever at the interbank after it closed at about N362.5/$1 in midday trading. The Naira will eventua...

Why Entrepreneurs Should Engage Their Spouses in the Business

When her husband first joined a startup, a woman I’ll call Cindy had saved up a comfortable nest egg for her family. Even with several young children, their financial situation was stable enough that their personal risk in the venture seemed minimal. But a year later, when the seed funding dried out and no substantial revenue was forthcoming, things went downhill for them. Her husband stopped receiving a salary, yet continued working and traveling extensively for the company. Cindy had to care for their children, including two toddlers and two autistic preteens, mostly on her own. She begged her husband to find another job, but he didn’t want to leave a business that he had already invested so much in. She offered to go back to work and have him watch the kids; he refused. Within two years, their financial reserves and their children’s college funds had disappeared entirely. Their home was eventually foreclosed on, and the family had to move in with a relative. Onl...

Emefiele gives insight, on what to Expect during his second term

The newly re-appointed Governor of the Central Bank of Nigeria, Godwin Emefiele, over the weekend enumerated the things intends to accomplish during his second term in office. Emefiele enumerated his plans while speaking to journalists at the University of Nigeria Nsukka (UNN), on the sidelines of the institution’s Special Convocation which took place on Friday. The CBN Governor gave delivered a lecture at the event. Driving down inflation: According to Emefiele, he intends to focus on policies that would drive down the country’s inflation rate, improve price stability, and drive economic growth. Emefiele’s Stern Warning: The CBN Governor further disclosed that he plans to work with his team to drive down imports and encourage exports. He also used the occasion to issue a stern warning to those who meddle with policies aimed at achieving economic stability, telling them that they will be caught and punished by law. Mr Emefiele’s second term plans came just a few days after ...

The Finance Dude

Search This Blog