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into Domiciliary accounts can also be transferred from such accounts while cash deposits into such accounts can only be withdrawn in cash also.
Call 0803 239 3958 for free financial consulting advice for your businesses. Attend our bi-monthly Peachtree Sage 50 accounting and reporting seminar.
Reach us or send your financial updates and articles to firstname.lastname@example.org.