NIGERIA: CBN Issues New Guidelines On Foreign Remittances

The Central Bank of Nigeria has said beneficiaries of diaspora remittances can now receive monies sent from abroad in foreign currency through the designated bank of their choice.

The beneficiaries can now receive their cash (denominated in hard currencies like Dollar) through the CBN authorised international monetary transfer operators (IMTO).

The apex bank in a new guideline titled: ‘amendment to procedures for receipt of diaspora remittances’ that was signed by its director of trade & exchange, Dr O.S. Nnaji, said recipients of such remittances may have the option of receiving these funds in foreign currency cash or into their 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 would receive a market reflective exchange rate for the market,” the bank stated.

The apex bank also noted that beneficiaries shall have unfettered access and utilisation to such foreign currency proceeds, either in cash and or in their domiciliary accounts.

In a separate memo titled ‘operations of domiciliary accounts, issued to ensure stability of the foreign exchange market, the central bank said export proceeds domiciliary accounts will continue to be operated based on existing regulations which allow account holders use of their funds for business operations only, with any extra funds sold in the Investors’ & Exporters (I&E) window.

The circular that was posted on the website of the bank also provides that for ordinary domiciliary accounts where accounts are funded by electronic/wire transfer, account holders will be allow unfettered and unrestricted use of the funds for eligible transactions. “Where accounts are funded by cash lodgements, existing regulation will continue to apply,” Dr Nnaji stated in the new guideline that was issued to all authorised dealers and general public.

He explained that the clarifications are necessary given the vastly proved capabilities of the CBN to monitor transactions, forestall money laundering and prevent the adverse effect of Dollarisation in the nation’s economy.

SOURCE: Leadership News