Naira’s value continues to rise against the U.S dollar on Wednesday at the parallel market as the exchange rate falls to N470/$1, as the Central Bank of Nigeria (CBN) issues new directive on International Money Transfer Operators (IMTOs) on foreign currency payment in cash to beneficiaries of diaspora remittances.
This is a N20 appreciation from N490/$1 it exchanged on Tuesday and a N30 rise compared to the rate the of N500/$1 on Monday.
This is according to the data available on Aboki FX.– a prominent FX tracking website at the black market.
At the NAFEX the opening rate stood at N392.54/$1 an appreciation from a closing rate of N394.00/$1 on Tuesday at the window, although it is a decline in value compared to the opening rate of N391.7/$1 on Tuesday, according to the data available on FMDQ.
Announcing the fresh directives to banks and IMTOs, Mr. O. Nnaji, Director, Trade and Exchange Department, CBN, in a circular titled, “Re: Amendment to Procedures for receipt of Diaspora Remittances”, said: “Further to the Circular Ref. No. TED/FEM/FPC/GEN/01/011 of November 30. 2020. on the above subject, we wish to reiterate and clarify to All International Money Transfer Operators (IMTO) the following; ‘IMTO’s must ensure that all funds in favour of beneficiaries/recipients in Nigeria be deposited into the Agent Banks‘ correspondent account.
“Agent Banks (Deposit Money Banks) in Nigeria will be responsible for all payment to beneficiaries/recipients either in foreign currency cash (USD) or into the beneciaries’/recipients’ domiciliary account in Nigeria.
‘The mode (if payment either in cash or transfer is at the sole discretion of the beneficiaries/recipients. “Please ensure strict compliance and be guided accordingly.”
The CBN had on Monday issued an amendment to the procedures for receipt of diaspora remittances. According to the publication seen by Investogist, the APEX bank stated that it was an effort to liberalize, simplify, and improve the receipt and administration of diaspora remittances into Nigeria.
Also on Monday, CBN provided clarifications on the interpretations on the operationalization of Domiciliary Accounts. The clarifications were partly to ensure the stability of the foreign exchange market.’
By: Ifunanya Ikueze