Naira gaining, exchanging N474/$ as new forex policy kicks off

The Nigeria’s Naira is firming up and gaining in the parallel market following the Central Bank of Nigeria (CBN) amendments to the foreign exchange rule on diaspora remittances.

The nation’s currency is exchanging at N474/$ on Thursday December 10, 2020, gaining yet another N4 in 24 hours. It exchanged at N478/$ on Wednesday December 9th, 2020.

The currency, which had closed at a four-year low of N510 on Monday November 30, 2020 had firmed up and gained N20 on Tuesday December 1, 2020 against the dollar as it exchanged for N490/$ after the Central Bank of Nigeria (CBN) relaxed the policy on foreign remittances and domiciliary accounts.

The apex bank in a statement on Monday November 30, 2020, 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into Domiciliary accounts can also be transferred from such accounts while cash deposits into such accounts can only be withdrawn in cash also.

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