The Central Bank of Nigeria (CBN) has directed International Money Transfer Operators (IMTOs) to commence remittances pay-out in Naira to beneficiaries, in addition to foreign exchange.
It has also directed that the Investors’ and Exporters’ Window foreign exchange rate should be used in determining the rate for such Naira pay-out.
The directives which were contained in a CBN circular dated July 10, 2023 and issued by the Director of Trade and Exchange. Dr. Ozoemena Nnaji was in furtherance to an earlier circular dated November 30, 2022 which provided guidelines on the payout policy of Diaspora remittances to beneficiaries back home.
The former circular introduced the payment of dollars to beneficiaries of diaspora remittances through the international money transfer operators (IMTO) through the designated bank of their choice and with unrestricted access to their funds
According to the new circular, the Naira payment was only an option, in addition to United States Dollars and E-Naira in receiving Diaspora remittances.
The Circular reads in full, “Further to the circular referenced FED/FEM/FPC/01/011 dated November 30, 2022 in respect of the above subject, the Central Bank of Nigeria hereby announces Naira as a payout option for receipts of proceeds of International Money Transfers.
“Accordingly, all recipients of Diaspora remittances through the CBN-approved International Money Transfer Operators (IMTOs) on the attached list shall henceforth have the option of receiving Naira payment in addition to USD and e-Naira as payout options.
“For the avoidance of doubt, IMTOs are required to pau out the proceeds using the Investors’ & Exporters’ window rate as the anchor rate on the date of the transaction.
“The regulation takes effect immediately.”
Recall that CBN had, mid last month, announced the unification of all segments of the Nigerian forex market by collapsing all windows into the Investors & Exporters (I&E) window.
The move was considered part of the new administration’s efforts to improve liquidity and stability in the market by attracting foreign investors into the Nigerian economy.
Further the apex bank stopped the RT200 programme and the Naira4dollar remittance scheme, last month.