CBN Extends Naira4dollar Incentive for Diaspora Remittances
After the expiration of the initial date, the Central Bank of Nigeria (CBN) has announced an extension to its Naira 4 dollar incentive to encourage diaspora remittances till further notice.
Naira: Official Exchange Rate Falls 92.4% in 5-Year
The apex bank made the announcement on Wednesday through a memo by Saleh Jibrin, Director of Trade and Exchange Department, addressed to Deposit Money Banks (DMBs), International Money Transfer Operators (IMTOs) and the general public.
Jibrin said that all aspects of the operationalisation of the scheme were to remain the same. Recalled the apex bank introduced the scheme on March 5 and scheduled to terminate it on May 8 in order to encourage foreign currency inflow into the country amidst scarcity.
Nigeria’s external reserve fell behind the $35 billion benchmark while CBN has reduced its intervention at the investors and exporters window.
In the statement, Jibrin said that the scheme would allow all recipients of diaspora remittances to be paid N5 for every one dollar received.
He said that beneficiaries would get the incentive, whether they collect the remitted dollars as cash across the counter or through their domiciliary accounts.
He instructed all deposit money banks (DMBs) and International Money Transfer Operators (IMTOs) to ensure that the scheme took effect.
“In an effort to sustain the encouraging inflows of diaspora remittances into the country, the CBN hereby announces this scheme as an incentive for senders and recipients of international Money Transfers.
“This incentive is to be paid to recipients whether they choose to collect the dollar as cash across the counter in a bank or transfer same into their domiciliary account.
“Having discussed with banks and IMTOs, the scheme takes effect from Monday, March, 8 and ends on Saturday, May, 8,” he had said.
Fast forward, it appears foreign exchange inflow is still needed given the continuous drop in external reserves as analysts believe the local currency remains overvalued.
CBN Extends Naira4dollar Incentive for Diaspora Remittances
