The Central Bank of Nigeria (CBN) has directed all Deposit Money Banks (DMBs), International Money Transfer Operators (IMTOs) to include Naira as a payout option for diaspora remittances.
CBN disclosed this in a circular published on its website on Wednesday.
The apex bank in circular on Wednesday referenced FED/FEM/PUB/FPC/001/004, issued by the Director of Trade and Exchange of CBN, Ozoemena Nnaji directed that the Investors’ and Exporters’ Window foreign exchange rate should be used in determining the rate for such Naira payout to ensure transparency.
With the announcement, recipients will now have options to receive their remittance proceeds either in naira, USD or eNaira.
“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 subsequently receive Naira payment in addition to USD and e-Naira as payout options.
“To avoid doubt, IMTOs must pay out the proceeds using the Investors’ & Exporters’ window rate as the anchor rate on the transaction date”, the Circular stated.
Recall that the CBN had on June 14, introduced foreign exchange reforms leading to the unification of the forex window and free float of the naira.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.