Skip to main content

CBN boosts dollar supply with new rules on domiciliary accounts, remittance

CBN boosts dollar supply with new rules on domiciliary accounts, remittance
CBN boosts cassava value chain with N25bn in 2020
CBN

By Babajide Komolafe & Elizabeth Adegbesan

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 lodgements.

READ ALSO:Cross River monarchs to invoke ‘native sanctions’ against criminals from Dec 1

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 authorised dealers and the general 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.

“Beneficiaries of Diaspora Remittances through International Money Transfer Operators (IMTOs) shall henceforth receive such inflows in foreign currency (US Dollars) through the designated bank of their choice.

“Such recipients of remittances may have the option of receiving these funds in foreign currency cash (US Dollars) or into their ordinary 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.

“In addition, these changes would help finance a future stream of investment opportunities for Nigerians in the Diaspora, while also guaranteeing that recipients of remittances would receive a market reflective exchange rate for their inflows.

‘All Authorized Dealers and the general public should note that beneficiaries shall have unfettered access and utilization to such foreign currency proceeds, either in cash and/or in their Domiciliary Accounts, in line with our circular TED/FEM/FPC/GEN/01/010. Please ensure strict compliance and be guided accordingly.”

The post CBN boosts dollar supply with new rules on domiciliary accounts, remittance appeared first on Vanguard News.


by Urowayino Jeremiah via Vanguard News https://ift.tt/2JtchO2 Best Known Member of the Cabinet Wikipedia
Labels:

Comments

Post a Comment

Popular posts from this blog

UPDATED: Nigeria’s coronavirus cases reach 1,728, fatalities 51

  By David Royal The Nigeria Centre for Disease Control (NCDC) says 196 new cases of coronavirus (COVID-19) have been reported in the last 24 hours, bringing the total number of confirmed cases to 1,728. NCDC also announced that seven more fatalities were recorded, bringing the total number of deaths to 51. The NCDC, in a tweet at about 11:55 p.m. on Wednesday, said the 196 new cases reported were; 87-Lagos, 24-Kano, 18-Gombe, 17-Kaduna, 16-FCT, 10-Katsina, 8-Sokoto, 7-Edo, 6-Borno, 1-Yobe, 1-Ebonyi, 1-Adamawa. The virus has spread to 34 states and the Federal Capital Territory, Abuja. Yobe, according to NCDC report, is the most recent state to record COVID-19 case in the country. According to the agency, Nigeria now has 1,370 active cases recorded as of 11:55 p.m. on April 29, while 307 infected persons have been treated and discharged, with 51 deaths recorded. READ ALSO: US says remdesivir shows ‘clear-cut’ effect in treating coronavirus “On the 29th of April 2020, 196 ...
Post a Comment
Read more

COVID-19: Transporters ask FG to set up N20bn intervention fund for sector

By Theodore Opara   Hiace AS the COVID-19 pandemic continues to impact on businesses across the country negatively, Inter State Transport operators in Nigeria under the umbrella of Public Transport Owners of Nigeria Association, PTONA, has cried out to the Federal Government to set up a N20 billion COVID-19 intervention fund on a single digit loan of five percent interest to enable them to replenish their fleet. The association in a letter to Vice President Prof Yemi Osinbajo, Chairman Presidential Economic Sustainability Committee on COVID-19 pandemic also appealed to the Federal Government to grant its members 10 percent special concession on import duties on buses as against the present 35 percent duty being charged on imported buses. The association said the Federal Government should direct the Central Bank to prevail on all commercial banks to restructure terms of loan for businesses mostly affected by COVID-19 pandemic, especially the inter-state passenger transport. ...
Post a Comment
Read more

Covid 19: Bowen University tasks government on post coronavirus fallout

By Shina Abubakar, Osogbo   THE Vice Chancellor of Bowen University, Iwo, Osun State, Prof. Joshua Ogunwole, has urged governments at different levels to prepare for the aftermath of coronavirus as he opined that life would not remain the same afterward. While alerting the government of the effect of the pandemic on the economy, he charged the people to brace up for the challenges post COVID-19 will pose for the society, especially in the area of human relation. READ ALSO: BRAIN DRAIN: Beyond minimum wage, give doctors welfare package — LAGOS NMA Ogunwole who disclosed to this while donating relief materials to the people of Iwo and Oluponna to cushion the effect of lockdown on the vulnerable residents of the towns, said the world would not remain the same as global economy would rely more on virtual interaction, hence, the masses must be prepared for the new reality. While noting that the school’s gesture was to support government’s efforts in alleviating the sufferings of ...
Post a Comment
Read more