The Central Bank of Nigeria (CBN) on Monday stopped beneficiaries of diaspora remittances from getting paid in naira.
The policy, which applies to recipients of diaspora remittances from International Money Transfer Operators (IMTOs) will allows recipients to be paid in dollar cash or have the funds paid into their domiciliary accounts.
A circular signed by CBN Director, Trade & Exchange Department, O.S. Nnaji, said the policy was meant to liberarise, simplify and improve receipt and administration of diaspora remittances into the Nigerian economy.
According to the CBN director: “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”.
READ ALSO: 40% Of Bank Customers Move Deposits To Dollar Accounts
“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 apex bank also noted that beneficiaries shall have unfettered access and utilisation to such foreign currency proceeds , either in cash and or in their domiciliary accounts.
The apex bank has also clarified that following different interpretations on the operationlisation of domiciliary accounts and to ensure the stability of the foreign exchange market, export proceeds domiciliary accounts will continue to be operated on existing regulations.
The regulators allow account holders use their funds for business operations only, with any extra funds sold in Investors’ & Exporters’ window.
Also, where domiciliary accounts are funded by electronic transfer or wire services, account holders will be allowed unfettered and unrestricted use of the funds for eligible transactions.
It said that where accounts are funded by cash deposits, existing regulations will continue to apply.
“These clarifications are necessary given the vastly improved capabilities of the Central Bank of Nigeria to monitor transactions, forestall money laundering and prevent adverse effects of dollarization of the economy, adding that Bank Verification Number will be used to enforce compliance,” the apex bank said.
 on Monday stopped beneficiaries of diaspora remittances from getting paid in naira.){kind=link}