In an apparent move to boost dollar supply into the economy, the Central Bank of Nigeria (CBN) yesterday introduced new rules that allow beneficiaries of diaspora remittance and transfers into domiciliary accounts to receive their money in foreign currency.
Previously, beneficiaries of diaspora remittance can only receive in cash the naira equivalent of the amount transferred. Also, foreign currency cash withdrawal from domiciliary accounts was restricted to money paid into such accounts by cash lodgments.
Announcing the policy change yesterday, CBN’s Director, Trade and Exchange Department, Dr. O Nnaji, said the new rules were to liberalize, simplify and improve the receipt and administration of diaspora remittances into Nigeria, as well as to ensure the stability of the foreign exchange market.
He said the removal was also consequent on the improved capabilities of the apex bank to monitor transactions, forestall money laundering and prevent the adverse effect of dollarization in the economy.
He stated this in two circulars to authorized dealers and the public, titled, “Amendment to procedures for Receipt of Diaspora Remittance”, and Operations of Domiciliary Account.
He said: “In an effort to liberalize, simplify and improve the receipt and administration of diaspora remittances into Nigeria, the Central Bank of Nigeria (CBN) wishes to announce as follows.
Vanguard Dec. 1, 2020
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