Naira 4 dollar cash back reward for diaspora remittance
March 16, 2021
Naira 4 dollar – Following the increasing trend of diaspora remittance to Nigeria, which statistically Nigeria is said to receive over $4 billion in annual remittances, the Central Bank of Nigeria has given a directive to banks who pay out remittances to adopt a dollar 4 naira cash back reward for every remittance.
Recall, in December 2020, the Central Bank of Nigeria issued a directive to international money transfer operators/banks to commence money transfer payouts in USD only.
The dollar as a universal currency has continued to exert immense pressure on the naira, consequently its demand has been on the raise without corresponding supply in due faith.
It’s on this note that CBN having evaluated dollar/diaspora remittances into the country decides to change the tie, which in its idea should relief the naira of the numerous pressure.
The idea is that the more diaspora remittances are being received in USD, there would be at least enough dollar in circulation, which proportionately should affect the dollar price downward.
Additionally, is to create transparency in the money transfer administration.
Recall that the banks before now strictly payout in naira, which to an extent have them determine the rate at which these remittances are being paid-out.
On the contrary, customers can now receive the hard currency itself then proceed to the market to negotiate for the best and affordable prices giving the parallel market condition.
Recipients could either receive the USD in cash across the counter or have same paid into their domiciliary account at once.
Naira 4 dollar cash back reward
To further motivate remittance and dollar payouts, the Central Bank of Nigeria had on March 8, 2020 introduced a fresh scheme that’s aimed at motivating remittances and its receipts by rewarding N5 for every $1 received.
This came to fore in a public letter sent by CBN which states thus;
“In an effort to sustain the encouraging increase in inflows of diaspora remittances into the country, the Central Bank of Nigeria (CBN) hereby announces the introduction of the CBN “Naira 4 dollar scheme” an incentive for senders and recipients of international money transfers.
Accordingly, all recipients of diaspora remittances through CBN licensed IMTOs shall henceforth be paid N5 for every $1 received as remittance inflow.
In light of this, the CBN shall through commercial banks, pay to remittance recipients the incentive of N5 for every $1 remitted by sender and collected by designated beneficiary.
This incentive shall be paid to the recipients whether they choose to collect the USD as cash across the counter in a bank or transfer same into their domiciliary account
In effect, a typical recipient of diaspora remittances, will at the point of collection, receive not only the USD sent from abroad but also the additional N5 per USD received.
The scheme takes effect from Monday 8 March 2021 and ends Saturday 08 May 2021.
Thais is to encourage all and sundry who have played actively in the diaspora money transfer to intensify effort, then benefit from the ongoing scheme accordingly.
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