Dollar to Naira News

CBN Mandates Banks, IMTOs to Pay Diaspora Remittances in Naira – THISDAY

By James Emejo in Abuja

The Central Bank of Nigeria (CBN) Tuesday directed banks and International Money Transfer Operators (IMTOS) to pay all diaspora remittances in Naira and match with the corresponding foreign currency inflows going forward.

The central bank disclosed this in a circular dated June 24, 2024, and signed by CBN acting Director, Trade & Exchange Department, Dr. W. J. Him, which was addressed to all Deposit Money Banks (DMBs) and IMTOS.

The apex bank noted that the move was part of CBN’s commitment to the smooth functioning of the foreign exchange markets and enabling greater remittance flows through formal channels.

Specifically, the central bank pointed out that it had implemented measures that will enable eligible IMTOs to access Naira liquidity through the CBN.

The CBN said that all IMTOs are expected to pay beneficiaries of remittances the equivalent of the foreign currency in naira.

“All licensed IMTOs are reminded that all diaspora remittances are expected to terminate in Naira and match with the corresponding foreign currency inflows,” the circular said.

The bank also said that the exchange rate that would be adopted for the transaction is the rate of the Nigerian Autonomous Foreign Exchan Market (NAFEM).

The CBN added, “The option of same day settlement will be available for transactions executed and confirmed before 12 noon on a trading date.

“The pricing for transactions executed with the CBN will be based on prevailing NAFEM rates, as referenced by an observable and acceptable market benchmark.

“Regulatory returns to be submitted to the CBN by all participants on a daily basis are mandatory and this is expected to contain all the relevant information on the sources of funds.

“All interested IMTOs are required to confirm their partner banks and advise standard settlement instructions to facilitate the smooth implementation of this initiative”.

See Dollar to Naira black market today, Pound to Naira, Euro to Naira, Dollar to Naira CBN rate and Dollar to Naira Bank rate today.

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