New CBN Forex rule brings life back to Naira, exchanges N490/$
Following the Central Bank of Nigeria (CBN) amendments to the foreign exchange rule on diaspora remittances, life came back to the Naira as it exchanged at N490/$ on Tuesday December 1, 2020, gaining a whopping N20 in 24 hours.
The naira, which had closed at a four-year low of N510 on Monday, was able to bounce back, gaining 4 percent against the dollar.
The local currency is expected to firm further as over 5,000 Bureaux De Change (BDCs) are to receive dollar disbursement from the CBN today.
On Monday, the CBN said beneficiaries of diaspora remittances through the international monetary transfer operators (IMTO) shall now have such inflows in foreign currency (US Dollar) through the designated bank of their choice.
The apex bank in a statement on Monday, signed by O.S. Nnaji, director of trade & exchange of CBN, said recipients of such remittances may have the option of receiving these funds in foreign currency cash or into their domiciliary account.
The CBN statement reads, “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 would receive a market reflective exchange rate for the market.”
The apex bank also noted that beneficiaries shall have unfettered access and utilisation to such foreign currency proceeds, either in cash and or in their domiciliary accounts.
The CBN had on February 23, 2020, explained that only electronic fund transfers into Domiciliary accounts can also be transferred from such accounts while cash deposits into such accounts can only be withdrawn in cash also.
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It should drop to on or about N450 by xtmas, and maybe N430 by ending Jan 2021. You can see how stupid the system is. Punishing innocent people with warped voodoo economic policies that have little or no effect on the policy makers.
Looks like economic common sense is beginning to prevail. CBN has issued a directive that recipients of foreign money transfers can now receive in $ at this end.
Imagine that *Amendments to FOREX rules on diaspora remittances*.
What a funny story to voice public.
Do you know that Lebanese outside are responsible for funding their home government as they make it a point of MUST to forwarding back what profit they make wherever they are to their home.
We are learning at a disappointing rate.
Is this not laughable and or an indication that those on our fiscal policy and decisions are incompetent?
Thank God anyway that our naira is picking up but that is not a rated international currency calls for a complete overhaul of our setting.
It is nearly becoming what Ghana CEDI was before its drastic review that made it worthwhile.