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CBN takes major decision on FX, approves diaspora remittances to be withdrawn in dollars

By David Oladele



Governor, CBN, Godwin Emefiele

The Central Bank of Nigeria (CBN) has announced amendment of procedures for beneficiaries of diaspora remittances through International Money Transfer Operators (IMTOs).

The CBN explained that the beneficiaries of diaspora remittances would now begin to receive inflows in foreign currency (US Dollars) through the designated bank of their choice.

The apex bank disclosed this in a statement issued to all authorized dealers and the general public and signed by its Director for Trade and Exchange Department, Dr. O.S. Nnaji, on Monday, November 30.

This is CBN’s frantic attempt to improve liquidity in the forex market and reduce the disparity between the black market and official I&E window.

What deduced from the CBN’s new directive is that whenever Nigerians living in diaspora transfer money to their loved ones in the country, they can now withdraw the money in dollar cash and sell it wherever they want to.

The directive also implies that Nigerians who receive foreign transfers such as Western Union or Moneygram can withdraw it in dollars and then sell at the black market rate or wherever they want to.

The CBN also explained that the recipients of remittances may have the option of receiving these funds in foreign currency cash (US Dollars) or into their ordinary domiciliary account.

According to the CBN, “These changes are necessary to deepen the foreign exchange market, provide more liquidity and create more transparency in the administration of Diaspora Remittances into Nigeria.

“In addition, these changes would help finance a future stream of investment opportunities for Nigerians in the Diaspora, while also guaranteeing that recipients of remittances would receive a market-reflective exchange rate for their inflows.

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“All Authorized Dealers and the general public should note that beneficiaries shall have unfettered access and utilization to such foreign currency proceeds, either in cash and/or in their Domiciliary Accounts, in line with our circular TED/FEM/FPC/GEN/01/010.

Earlier, reported that the central bank had taken a drastic decision against the exchange rate, asking the Bureau De Change (BDC) operators to sell the United States dollars to end-users to N392 to a dollar.

Meanwhile, this medium reported Nigeria’s Naira had crashed against the United States’ dollar as the exchange rate as at today, Monday, November 30, stands at ₦500 US$1 in the parallel market.

The exchange rate on Friday, November 27, closed at ₦495/US$1 in the parallel market.

@TechEconomyNG connects past-present-emerging technological impacts on Businesses, People and Cities. All Correspondence to: [email protected]

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