The Central Bank of Nigeria (CBN) has announced an indefinite extension of its Naira-4-Dollar policy.
In a circular entitled: “Re: Introduction of the CBN’s “Naira 4 Dollar Scheme” for Diaspora Remittances” signed by the director, trade and exchange department, Mr. Saleh Jibrin, the bank said the scheme which was initially scheduled to end on May 8 would have to continue until further notice.
“Further to the CBN Circular referenced TED/FEM/PUB/FPC/01/003 dated 05 March 2021 on the above subject matter, which was originally scheduled to end on May 8, 2021, we hereby announce the continuation of the scheme until further notice.”
It would be recalled that the CBN introduced the Naira-4-Dollar scheme in an effort to sustain the encouraging increase in inflows of diaspora remittances into the country through the international money transfer operators (IMTOs).
“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 is to be paid to recipients whether they choose to collect the dollar 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 dollar sent from abroad but also the additional N5 per dollar received,” it stated.