Fakoyejo Olalekan
International Money Transfer Operators (IMTO) have been directed by the Central Bank of Nigeria (CBN) to add naira and eNaira payout to diaspora remittances.
In a circular released on Wednesday, titled; Payout Option In Naira For Receipt Of Proceeds Of Diaspora Remittances,’ the central bank reviewed the payment option for diaspora remittances, which was previously only paid out in the United States Dollar.
Join our WhatsApp ChannelThe CBN, under the suspended Governor, Godwin Emefiele, had warned the International Money Transfer Operators against converting diaspora remittances.
Emefiele had ordered that payment of diaspora remittances should be made into domiciliary accounts in the currency they were transferred.
However, more than a month after Emefiele was suspended from office by President Bola Tinubu, the CBN has returned naira to the payment options and included the Central Bank Digital Currency (CBDC), eNaira.
“Further to the circular referenced TED/FEM/FPC/01/011 dated November 30, 2020 in respect of the above subject, the Central Bank of Nigeria hereby announces Naira as a payout option for receipts of the proceeds of International Money Transfers.
“Accordingly, all recipients of diaspora remittances through the CBN approved IMTOs on the attached list shall henceforth have the option of receiving Naira payments in addition to USD and eNaira as payout options,” CBN said.
The financial regulator, in the circular with reference no: TED/FEM/PUB/FPC/001/004, also instructed the International Money Transfer Operators to use the Investors’ and Exporters’ window rate as a base for the foreign exchange conversion.
“For the avoidance of doubt, International Money Transfer Operators are required to pay out the proceeds using the Investors’ & Exporters’ window rate as the anchor rate on the day of the transaction.
“This regulation takes effect immediately. Please note and ensure compliance,” the circular signed by the apex bank’s Director, Trade & Exchange Department, O.S Nnaji, disclosed.
