Polaris Bank has recently communicated important updates regarding the guidelines for Forms A and Q requests to its customers. The bank stated that these updates were implemented in accordance with the new foreign exchange policy introduced by the Central Bank of Nigeria (CBN).
Forms A and Q are specific application documents developed by the CBN to facilitate access to foreign exchange (FX). Form A is designed for payment purposes related to service transactions (invisible trade), such as foreign tuition fees, training courses, and medical expenses. On the other hand, Form Q enables importers and small-scale businesses to purchase forex from the official window.
On June 14, Nigeria’s financial regulatory authority announced the unification of all segments of the forex exchange market, resulting in the consolidation of all FX windows into the investors and exporters (I&E) window.
As a consequence of this new policy, Polaris Bank stated that all Form A and Q requests will be processed based on the prevailing exchange rate at the official market. The bank encouraged customers to ensure sufficient funding in their accounts to accommodate these transactions.
Polaris Bank emphasized that these changes apply to both new and existing Form A and Form Q transactions, emphasizing the need for customers to familiarize themselves with the revised guidelines.
“In line with the changes in the CBN foreign exchange policy, the following updates have been made on Form A (personal travel allowance (PTA) and business travel allowance (BTA), school fees and medical fees; and Form Q requests,” Polaris Bank said.
“All applications would continue to be processed through the bank. All regulatory documentation requirements remain the same. CBN will no longer determine the foreign currency exchange rate.
“The rate will be determined by the prevailing investors and exporters (I&E) window rate at the time of purchase. We advise all applicants to adequately fund their accounts with the naira equivalent at the I&E window rate.
“These changes apply to all new and existing Form A and Form Q transactions.”
