BusinessDay
NigeriaDecides2023

CBN extends Naira for dollar scheme indefinitely

The Central Bank of Nigeria (CBN) has extended the Naira for dollar scheme till further notice, saying all aspects of the operationalisation of the programme remain the same.

This was disclosed in a letter to all deposit money banks, International Money Transfers Operators (IMTOs), and the general public dated May 5, 2021, and signed by A.S Jibrin for the director, trade, and exchange department, CBN.

The Naira for dollar scheme was originally scheduled to end on May 8, 2021. “We hereby announce the continuation of the scheme until further notice,” the circular stated.

On March 6, 2021, the CBN introduced the Naira 4 dollar scheme as an incentive to boost inflows of diaspora remittances into the country.

Read Also: Naira strengthens against dollar as liquidity improves

The new policy on remittances flows by the lender of last resort, which offers to reward recipients of diaspora remittances is expected to reduce costs and check roundtripping, according to the regulator.

Godwin Emefiele the CBN governor had explained that the move was also to increase the transparency of remittance inflows and reducing rent-seeking activities., even as he expressed optimism that the new policy measure will encourage banks and financial institutions to develop products and investments vehicles, geared towards attracting investments from Nigerians in the diaspora.

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