GTBank Launches FX Platform For Domiciliary Account Holders to Rival Parallel Market Operators

Junior staff of GTbank set to get increased pay Photo credit: @GTB Source: Facebook

Guarantee Trust Holding Company, the parent company of GTBank, has floated a new foreign exchange platform
The new platform allows customers to convert foreign exchange, especially the dollar, from the comfort of their homes
It allows users to convert up to $50,000 to naira using their domiciliary accounts

The new foreign exchange product released by Guarantee Trust Bank, which allows customers to change dollars to naira instantly on Internet banking, is seen as a spoiler for black market operators.

The new product allows bank customers to seamlessly convert dollars in their domiciliary accounts to naira from the comfort of their homes or offices as banks seek creativity.

Customers can convert up to $50,000 to naira

BusinessDay reports that GTCo is the only bank or financial institution in Nigeria piloting the service via its Internet banking solutions as other banks might soon play catch up.

The bank stated in an email that customers could convert up to $50,000 to naira daily while converting from naira to dollar has yet to be available.

GTB seeks to eliminate the risks of trading with the black market or parallel market operators.

New feature seeks to rival black market operators

Experts believe the new platform will eliminate the parallel market as CBN seeks to unify the exchange rate in the country, stating that the new platform does not require users to withdraw at the counter before exchanging forex.

The Central Bank of Nigeria (CBN) announced on June 14, 2023, that it had collapsed all segments of the official FX markets into a single market where the willing buyer and willing seller were re-introduced.

Due to the naira float by CBN, the official rate increased from 463.38 per dollar to N763, which is the current rate.

The apex said in a circular that operations in this window shall be guided by the circular on the structure of the window, dated April 21, 2017, and referenced FMD/DIR/CIR/GEN/08/007, adding that all eligible transactions are permitted to access foreign exchange at this window.

Finally, Naira nears convergence in black and official markets to achieve Tinubu’s aim reported that the Naira recovered marginally against the dollar on Monday, July 3, 2023, gaining N1.00 per dollar as demand thawed at the parallel market.

During the intra-day session on Monday, July 3, 2023, the dollar was quoted at an average rate of N771, between N767 and N775, as against N772 quoted on Friday, June 30, 2023.

According to black market operators, demand for the US greenback moderated as the rate at the official market almost merges with the parallel market