By Francis Ogwo
The Central Bank of Nigeria (CBN) has announced that beneficiaries of diaspora remittances through the International Monetary Transfer Operators (IMTO) can henceforth have such inflows in foreign currency (US dollar) through the designated bank of their choice.
This was contained in a statement by the apex bank on Monday signed by the Director of Trade & Exchange, O. S. Nnaji.
The statement said recipients of such remittances may have the option of receiving such funds in the foreign currency cash or into their domiciliary account.
“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,” the statement read.
“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 CBN in the statement also noted that beneficiaries shall have access and utilisation to such foreign currency proceeds, either in cash and or in their domiciliary accounts.
The new guidelines also provides that operators of export domiciliary accounts will continue to operate based on existing regulations which allow account holders use their funds for business operations only with any extra funds sold in the import and export window.
Also, operators of ordinary domiciliary accounts where accounts are funded electronically or wire transfer, would be allowed unfettered and unrestricted use of these funds for eligible transactions. And where accounts are funded by cash lodgments, existing regulation will continue to apply.
Recall that the Naira has been under severe pressures with its values dropping against other foreign bills.This has led to several fingers pointing at the CBN for the downward slope of the value of the naira especially in some policies which industry players have over the period termed ‘draconian’.
A good beginning and departure from backwardness. Never can the limited amounts being transferred for families back home from the Diaspora enrich Nigeria. People should stop suffering for the incompetence of others.